UK-based drinks giant Diageo has finally sold its fastfood chain Burger King to a consortium of US investors for US$1.5bn.
The purchase price is around one third less than had been previously agreed. Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners originally offered $2.26bn for the chain but the terms of the sale came under review in November following a slump in sales at Burger King.
Diageo, the world’s largest wine and spirit producer with brands such as Baileys, Smirnoff and Johnny Walker, decided to sell the fastfood chain in order to concentrate on its premium drinks business.
“We are pleased that we have been able to reach this agreement despite a difficult market and at a time of tough trading conditions for the quick service restaurant sector,” Diageo’s chief executive Paul Welsh was quoted as saying by BBC Online.
“We continued to review our options but concluded that this transaction with this buying group was the most certain route to achieving separation.”