Burger King sold for $3.26 billion

Fast food chain Burger King is being sold to a private equity company in a deal valued at $3.26 billion (£2.1 billion). The announcement followed days of speculation about a takeover.

3G Capital, a private equity firm, is buying the chain, which has 12,100 restaurants around the world. The deal is worth $24 a share. BBC News reported that TPG Capital, Bain Capital and Goldman Sachs Funds, a group of private equity firm, still owns 31 per cent of Burger King shares. 3G will also assume Burger King's debt, which makes the total value of the deal $4 billion. Burger King, which was founded in 1954, is second only to McDonald’s in burger chains, but the recent recession has made things more difficult for the business. 3G did not mentioned future plans for the company in the takeover announcement, but some analysts think overhauling the menu and opening more restaurants in around the world benefit Burger King. "In our view, improved restaurant assets will be a key to stabilizing sales - and this is something that could take several years and require significant reinvestment in assets," BBC News quoted UBS analyst David Palmer as saying. 3G has a very small stake, less than one per cent, in burger chain Wendy’s. Burger King's chairman and chief executive John Chidsey will now become co-chairman of the board, along with Alex Behring, managing partner of 3G.