Diageo has been hiving off its non-alcohol interests and has been looking for a buyer for Burger King since June 2000. It plans to use the money from the sale to invest in its alcohol brands, which include Smirnoff vodka and Bailey's.
It has agreed the sale to a consortium led by Texas Pacific Group, and which also includes Bain Capital and Goldman Sachs.
"With a world-class brand, a fundamentally sound strategy and a committed organisation and franchisee base, we are confident that Burger King Corporation has a very bright future," David Bonderman, chief executive officer of the Texas Pacific Group, said. "We intend to support the company with capital, problem solving and experience."
The price of the sale is dependent upon Burger King meeting performance targets for the financial year ending June 2003. It has been preparing itself for the demerger, building a new headquarters in Miami.
This week, it announced it was rearranging its advertising agencies in the US and the UK. Interpublic Group of Companies agencies won the majority of the work, with Deutsch and Media First International picking up the US creative and media accounts respectively. In the UK, Burger King switched its creative account from Lowe & Partners to Delaney Lund Knox Warren & Partners.
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