Consortium gobbles up Burger King
20 January 2003 by web
Food and drinks giant Diageo has sold Burger King for a knockdown price of $1.5b (£945m).
The price was reduced from the previous $2.26b (£1.45b) after the buyer, a venture capital consortium led by Texas Pacific, raised concerns about the difficult trading conditions facing Burger King and similar fast-food chains.
Diageo announced in November that the original deal with Texas Pacific had collapsed, but said discussions were continuing. The company will now focus on its drinks business.
Burger King made an operating profit of $230m (£145m) in the year to 30 June 2002.
In the previous half-year, to 31 December 2001, operating profit was $114m (£72m), but this is expected to fall by about 20% in the equivalent period this year.
