3G Capital has agreed to acquire Burger King (NYSE: BKC) for $4 billion, including the assumption debt. The firm will pay Burger King shareholders $24 per share of common stock, a 46% premium. Debt financing for the deal is being provided by JPMorgan Chase and Barclays Capital. TPG Capital, Goldman Sachs and Bain Capital currently own 31% of the company from a $1.4 billion buyout in 2002 and have agreed to sell their stakes in the transaction. The operator of fast food restaurants went public in May 2006.
Since the beginning of 2008, 72 companies in the Restaurants & Bars industry have been involved in PE deals, according to the PitchBook Platform. Deal flow in the industry appears to be slowly recovering this year with 13 completed deals already served up and two more in the works after plummeting, like much of the rest of the PE industry, from 44 deals in 2008 to only 16 for all of 2009. The slight rise in deal count and the $4 billion Burger King deal could be possible signals that PE funding is returning to Restaurants & Bars. After all, the second largest Restaurants & Bars deal since 2008, after the Burger King deal, also closed this year, that being the $704 million buyout of CKE Restaurants by Apollo Global Management in July.