Diageo, the world's biggest wine and spirit producer has announced it has agreed the sale of its fast food concern Burger King to a consortium composed of Texas Pacific, Bain Capital and Goldman Sachs

Food & Drink Weekly, July 29, 2002

Diageo, the world's biggest wine and spirit producer has announced it has agreed the sale of its fast food concern Burger King to a consortium composed of Texas Pacific, Bain Capital and Goldman Sachs. Diageo will receive $2.26 billion in cash for Burger King Corporation on a debt free basis. Burger King Corporation will retain a minimum level of working capital, which will include $15 million of cash.

A portion of the purchase price is dependent upon Burger King Corporation satisfying certain performance targets in its financial year ended 30 June 2002. Diageo said in a statement that it anticipates that the cash from the deal will be directed towards reinvestment in its premium drinks business and for return to shareholders. The tax cost on the disposal is estimated at approximately $175 million.