US firms in BK consortium

The Blackstone Group, Bain Capital and Thomas H. Lee Partners are reportedly looking to join forces in a bid for Diageo’s fast food chain.

Three US private equity firms are planning to form an alliance to make a joint bid for Burger King. The buyout giants are currently discussing plans for a consortium to bid for the hamburger chain, reports the Daily Deal.

The consortium comprises The Blackstone Group, Bain Capital and Thomas H Lee Partners. Diageo, which has set April 26 deadline for first-round non-binding bids, plans to choose a winner by mid-June. Greenhill & Co and UBS Warburg are advising Diageo on the sale.

Burger King has been the subject of a number of rumoured bids. It is estimated that a successful bid for the firm would require about $700m in equity in addition to $1bn in debt.

Diageo announced last year that it was reviewing its options for the burger chain, with an IPO being one of the mooted options. It now looks increasingly likely that the firm will look for a buyer, with private equity bidders looking the most likely to emerge as potential bidders.

Blackstone, Bain and Thomas H. Lee have declined to comment.