Burger King Holdings Inc. agreed to a $3.3 billion leveraged buyout by a private-equity firm that proposes to reinvigorate the struggling hamburger chain by accelerating its international expansion.
3G Capital Management Inc., a New York-based private-investment firm with roots in Latin America and past investments in U.S. fast-food restaurants, has agreed to acquire the burger chain for $24 a share. It has said it favors the company's plans for expansion in Asia and Latin America. 3G executives were unavailable to comment.
Miami-based Burger King has struggled as the recession hit hard at its young consumers, and a weak menu forced it to increase promotions that sapped income. Its profit for the fiscal year ended June 30 fell 6.6% on a 1.4% sales decline.
"I know from talking to them that one of the key things that attracted them to the brand is the growth we've had in Latin America. Brazil, in particular, has been a big success story for Burger King," Burger King Chief Executive John Chidsey said in an interview. "They can help us expedite growth in Latin America, Europe and Asia as well."
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