3G Capital Buys Out Burger King - They Want it Their Way

"Have it your way." This is an example of a unique selling proposition (USB). People across the globe can easily recognize this tag from Burger King, home of the Whopper. For over 50 years, Burger King has pleased customers with their brand and the uniqueness of a flame-broiled burger. Burger King has also been on the cutting edge of fast food restaurants having introduced the drive-thru window in the seventies and increasing the size of their sandwiches by 50% without increasing costs.

Throughout the history of Burger King, several companies and capital firms such as Pillsbury, Grand Metropolitan PLC, Diageo PLC, and Texas Pacific Group (TPG), Bain Capital, and Goldman Sachs capital Partners have acquired ownership rights. Always a privately held company, Burger King finally went public in 2006.

Now enter into the equation a multi-billion dollar global investment firm, 3G Capital. 3G Capital is known for maximizing the potential of brands and businesses. 3G Capital functions on four principles of success. Those principles are operational excellence, board involvement, deep sector expertise, and an extensive global network. 3G Capital also puts an emphasis on recruiting, developing and retaining top-tier talent.

3G Capital's proven success record includes controlling or partial interest in global businesses. The businesses include Anheuser-Busch InBev, Lojas Americans, and America Latina Logistica.

With the announcement of the acquisition of Burger King by 3G Capital, shares of Burger King Stock jumped an unprecedented 24%. A five day change of 33.5% was also witnessed. The deal was done when 3G Capital agreed to purchase Burger King at $24 per share. With a closing price of $16.45, this amounts to approximately $4 billion.

With both sides, 3G Capital and Burger King being in mutual agreement, the tender offer for the outstanding shares will commence no later than 9/17/10. Within the following days, Burger King can solicit superior offers from third parties. This deadline for Burger King is 10/12/10.

With over 12,500 restaurants in the United States and 76 countries worldwide, Burger King is poised to again be a major player in the fast food industry. Tough economic times and even tougher competition from the likes of McDonald's have forced Burger King to readjust its forecasts. With 3G Capital investing close to $4 billion, investors will again have it their way.

Source: money.cnn.com

Source: investor.bk.com