THE three private-equity firms behind the Burger King fast-food chain expect a whopper of a payout as they prepare for a potential $2.5 billion (£1.3 billion) flotation.
Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners, the buyout shops that acquired Burger King from Diageo three years ago, are planning to appoint investment banks within weeks to advise on an initial public offering, said bankers. A float in New York is expected to crystallise big gains for the trio. They paid $1.5 billion in December 2002. Sources said a timetable had yet to be established, and that a sale of Burger King had not been ruled out.
Fast-food assets have commanded high prices in recent months. In December Bain Capital teamed up with Carlyle Group and Thomas H Lee Partners to pay $2.4 billion for Dunkin’ Brands, parent company of Dunkin’ Donuts and Baskin-Robbins.
