Show Hide image

3G Capital acquires Burger King

Deal closed for almost $4bn aggregate.

Burger King Holdings (BKC) and 3G Capital have closed the transaction for acquisition of BKC by a 3G Capital affiliate for nearly $4bn in the aggregate, which also comprises the assumption of outstanding debt.

Bernardo Hees will be chief executive officer of BKC, and Alexandre Behring, who is the managing partner of 3G Capital, will join as co-chairman of the board of BKC with immediate effect, alongside John Chidsey, BKC's chairman and CEO before the transaction is complete.

Hees said that the company is thrilled to complete this transaction and eager to continue building the Burger King brand and enhance the guest experience in its restaurants all over the world.

"We see many exciting opportunities for this business, including developing new product offerings and expanding the brand internationally. We also are looking forward to collaborating closely with our international franchisees in pursuit of growth in areas such as Asia and Latin America," Hees said.

As a result of the completion of the merger, the common stock of BKC will no longer be listed for trading on the New York Stock Exchange, which is expected to be effective by 20 October 2010.

Lazard, JP Morgan Securities and Barclays Capital acted as financial advisors to 3G Capital, while Kirkland & Ellis acted as legal advisor.

Morgan Stanley and Goldman, Sachs & Co acted as BKC's financial advisors. Skadden, Arps, Slate, Meagher & Flom and Holland & Knight acted as its legal advisors.

The Burger King system operates nearly 12,150 restaurants in all 50 states and in 76 countries and the US territories worldwide.

Around 90% of Burger King restaurants are owned and operated by independent franchisees, and many of them are family-owned operations.

New York-based 3G Capital is a global investment firm focused on maximizing the potential of brands and businesses. Affiliates of the firm and its partners have controlling or partial ownership stakes in global companies such as Anheuser-Busch InBev, Lojas Americanas and America Latina Logistica (ALL).

Show Hide image

Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.