Two firms remain in Burger King auction

The auction to acquire Diageo’s fast-food chain has entered the final stages with two US private equity firms still in the running.

US private equity firms Texas Pacific and Blackstone Partners are head-to-head in the final stages of the auction to acquire fast food chain Burger King, according to a report by Reuters.

The report suggests that the Texas Pacific offer, which is supported by Burger King chairman John Dasburg, is slightly ahead in the reckoning, quoting one source as saying that the Texas Pacific deal looks ‘close to signing in July’. The deal is likely to value the 11,500-strong Burger King chain in the region of $2.3bn.

Goldman Sachs Capital Partners and Bain Capital are also involved in the Texas Pacific bid. The Blackstone Group consortium includes Thomas H. Lee Partners and is advised by Merrill Lynch.

The deal is expected to complete in July, later than the July 5 deadline targeted by BK's owners. The UK-listed alcoholic beverages manufacturer announced in March that it was to put Burger King up for sale and appointed investment bank Greenhill to co-ordinate the sale. 

Diageo had originally planned to float the 11,500-strong Burger King chain but a downturn in the public markets persuaded the firm that a sale was the more viable option.