Diageo’s Burger King Sale May Collapse
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Diageo’s $2.26-billion sale of Burger King to Texas Pacific Group may collapse as revenue growth at the restaurant chain stalls, delaying plans by the world’s biggest liquor maker to focus on its drinks business.
Texas Pacific and partners Bain Capital Inc. and Goldman Sachs Group Inc. want to renegotiate the terms of the July agreement, a Diageo spokeswoman said. Stagnant sales may hinder the buyers’ plans to borrow $1.5 billion to fund the purchase, she said.
London-based Diageo plans to sell the world’s No. 2 hamburger chain to concentrate on beverages after last year’s $5-billion purchase of some Seagram Co. brands, including Captain Morgan rum.
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