Diageo has agreed the sale of Burger King to a consortium comprising the Texas Pacific Group (TPG), Bain Capital Partners and Goldman Sachs Capital Partners for $1.5 billion.
The purchase price will be settled in part by cash, by $86 million in assumed debt and by means of subordinated debt with a principal amount of $212.5 million.
The transaction is expected to close later today when payment will be received.
Earlier, the New York Timesreported Diageo had been trying to sell Burger King for two years to rid itself of a struggling business and focus on its core beer and drinks operation, including Guinness and Johnnie Walker.
In July, Diageo announced an agreement with the buyout firms that hinged on Burger King meeting certain performance targets. Burger King apparently fell short of those goals and, last month, its potential buyers pulled out, the report said.