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Diageo to Sell Burger King for $2.3B

July 25, 2002

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LONDON (AP) _ Diageo PLC announced Thursday it has agreed to sell its fast-food business Burger King Corp. for $2.26 billion in cash.

The buyer is a consortium of U.S. venture capital firms led by Texas Pacific Group. The consortium’s other members are Boston-based Bain Capital and the private equity arm of U.S. investment bank Goldman Sachs.

The long-awaited deal, reached after days of intense negotiations, is crucial to Diageo’s strategy of focusing on its more lucrative business of making and selling alcoholic beverages. The company’s best-known brands include Johnnie Walker scotch, Guinness beers and Bailey’s Irish Cream liqueur.

London-based Diageo, the world’s largest liquor company, has long said it planned to unload Burger King in a sale or spinoff.

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