Diageo focus continues
completed the sale of Burger King Corporation to a private equity
consortium, composed of Texas Pacific Group (TPG), Bain Capital and
Goldman Sachs Capital Partners, that is backing the fast-food
firm's management.
British drinks giant Diageo on Thursday announced that it has completed the sale of Burger King Corporation to a private equity consortium, composed of Texas Pacific Group (TPG), Bain Capital and Goldman Sachs Capital Partners, that is backing the fast-food firm's management.
Under terms of the agreement Diageo will receive €2,260 million in cash for Burger King Corporation on a debt free basis and Burger King Corporation will retain a minimum level of working capital, which will include $15 million of cash. The deal is expected to close in the fourth quarter of this year.
The sale of Burger King is part of a strategy by Diageo to divest itself of food activities in order to focus on drinks. In March 2002 Diageo commenced a review of options for the separation of Burger King Corporation as the final step in its realignment behind premium drinks.
"Today's announcement represents an important milestone in Diageo's journey. In the last two years since we announced our intent to exit food, we have brought together our global spirits, wine and beer businesses, including exciting new assets from Seagram."
Diageo, listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO), currently trades in over 180 markets around the world. The entire Burger King restaurant system generated $11.2 billion in sales in over 11,000 worldwide restaurants in the year ended 30 June 2001.
