San Diego mergers and acquisitions attorneys have learned that Burger King Holdings Inc. agreed on Thursday to sell itself to 3G Capital, an investment firm with roots in Brazil. The deal is reportedly valued at $4 billion, including the assumption of debt.

The sale is the largest leveraged buyout of a fast-food chain ever, and it is the second for Burger King in the last eight years.

Burger King's new owner (if the deal goes through), 3G Capital, is backed by wealthy Brazilians, including a billionaire and former tennis champion that Warren Buffett has called a "good friend."

Burger King was seen by 3G as a potential investment...

several months ago and the two companies began a series of friendly discussions.

The investment firm wants to build Burger King's international presence, particularly in Latin America and Asia.

Burger King derives nearly 70 percent of its revenue from the North American market. In that market, the chain has struggled lately. Burger King forecast weak demand in its new fiscal year and cautioned that uncertainty regarding the costs of wheat and beef could affect its results.

Burger King's customers, largely younger men, have suffered more from the economic slowdown, hurting BK's sales. Some analysts also say Burger King's menu is weak because it is less varied than McDonald's.

3G is working with the company to find a new chief executive. The deal worked out is that 3G will pay $24 a share for Burger King, or $3.26 billion, a 46 percent premium to Burger King's share price before rumors of the sale got out.

Previously, 3G's investments have been focused mainly on consumer-oriented companies. (It also employs Marc Mezvinsky, who married Chelsea Clinton last month.)

Source: New York Times "Burger King Agrees to $4 Billion Private Equity Offer" September 3, 2010