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MIAMI-Locally based Burger King Corp., long rumored as a takeover target, is being bought from London-based Diageo Plc for $2.26 billion in cash by a Fort Worth-led investment consortium comprised of Texas Pacific Group, Boston-based Bain Capital, owner of Domino’s Pizza chain, and Goldman Sachs Capital Partners of New York.

A prepared statement from Diageo says the deal is expected to close in the fourth quarter. About 5% of the purchase price hinges upon Burger King meeting certain performance targets for its fiscal year ending July 31. The contract calls for Burger King to retain $15 million in cash as a minimum level of working capital.

Burger King chairman John Dasburg and his management team will remain with the company for an undetermined period, the statement says. GlobeSt.com couldn’t reach Dasburg at publication deadline.

Burger King’s parent is one of the world’s largest liquor distributors. In unloading the chain, Diageo says it plans to reinvest the proceeds into its core business and return some of the cash to shareholders.

Two years ago, Diageo announced plans to exit the food business. In March, Diageo again said it was in talks to sell Burger King, its only remaining non-food asset.

Founded in 1954, the chain has 11,000 restaurants in 50 states and 55 countries. The firm generated $11.2 billion in sales in 2001.

Greenhill & Co. is Diageo’s financial adviser along with UBS Warburg and Merrill Lynch International. Sullivan & Cromwell is the company’s legal counsel.

Texas Pacific Group is a private investment firm backed by $7 billion of equity capital. Its other investments are Beringer Wine Estates, Continental Airlines, J. Crew, Oxford Health Plans, Petco and Del Monte Foods.

Bain Capital, also private, manages $14 billion of capital. Goldman Sachs Capital Partners is leveraged by seven private equity funds and two mezzanine funds put in place since 1986.

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