Burger King sold for £2.1bn

Burger King is being sold to private equity firm 3G Capital in a deal said to be valued at $3.26bn (£2.1bn).

The fast food company has been subject to takeover rumours all this week, news that sent shares in the holding company up by over 20% in US trading yesterday (2 September).

Burger King has been struggling of late. The company reported a 2.3% drop in global sales for 2010 compared with a 1.2% rise in the same period in the previous year.

In contrast, rival McDonald’s reported a 4.8% rise in sales during the second quarter of the year.

New owners 3G Capital is a private equity firm that specialises in what it sees as low-risk investments.

The chain has been public since 2006, but was previously owned by a group of investment firms.

The group, which consists of TPG Capital, Bain Capital Partners and Goldman Sachs Funds – still owns 31% of Burger King’s outstanding shares and has agreed to tender its shares in the deal.

Drinks maker Diageo owned the burger chain until 2002 and still holds a 32% stake in the firm.

In May Burger King named ex-Coca-Cola marketer Natalia Franco as its chief marketing officer to replace Russ Klein who left Burger King in November.

Shortly after Franco’s appointment Burger King’s most senior European marketer David Kisilevsky left the fast food chain to join ad agency McCann Erickson.

Latest from Marketing Week

Marketing Week Meets… Mark Ritson

The Marketing Week columnist, consultant and professor explains why marketers need to talk about “making money first”, in a podcast recorded at the Festival of Marketing in October.

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here