3G Capital

3G Capital
Private
Industry Investment management
Founded 2004
Headquarters Rio de Janeiro
Key people
 Jorge Paulo Lemann
Alex Behring
(Managing partner)
Bernardo Hees
Products Hedge funds, Private equity
Number of employees
 50+
Website www.3g-capital.com

3G Capital is a Brazilian multibillion-dollar investment firm,[1][2][3] founded in 2004 by Alex Behring, Jorge Paulo Lemann, Carlos Alberto Sicupira, Marcel Herrmann Telles and Roberto Thompson Motta.[4]

The firm is best known for implementing zero-based budgeting at its portfolio companies, as well as partnering with Berkshire Hathaway for its acquisitions, including those of Burger King, Tim Hortons, Heinz and Kraft Foods.[5][6]

History

3G Capital was founded in 2004. The firm is best known for partnering up with Berkshire Hathaway for its acquisitions, including those of Burger King, Tim Hortons, Heinz and Kraft Foods.

Notable deals

In 2010, the company acquired Burger King for $3.3 billion, and subsequently took the company private. The deal was announced in September 2010, and was finalized in November.[7] Shareholders received $24.00 per share in cash.[7] Under new management, Burger King introduced a reworked menu and marketing strategies.[8] In June 2012, Burger King was once again listed as a publicly traded company through a $1.4 billion deal with Justice Holdings. Despite the relisting, 3G Capital retained a 71% stake of the company.[8]

In December 2014, the Canadian federal government approved the purchase of Tim Hortons by 3G Capital for $12.5 billion. The acquisition merged Burger King with Tim Hortons as Restaurant Brands International.[9]

On 25 March 2015, it was announced that 3G Capital was in "advanced talks" to buy Kraft Foods for $40 billion, and merge it with Heinz to create the world's fifth largest food company.[10][11] Heinz was being advised in the transaction by Lazard and Kraft by Centerview Partners.[12]

Offices and management

3G Capital has offices in Rio de Janeiro and New York City and the firm is run by managing partner Alex Behring out of New York.[13][14] Affiliates of the firm and its partners have control or partial ownership stakes in other global companies such as Anheuser-Busch InBev, Lojas Americanas (the largest non-food and online retailer in Latin America), and América Latina Logística (the largest Latin American railroad and logistics company).

References

  1. ↑ Gara, Tom. "Will Heinz Get the Brazilian Treatment?". WSJ.
  2. ↑ "Latin American Herald Tribune - Buffett's Berkshire Hathaway, Brazil's 3G Capital Buy Food Giant H.J. Heinz". laht.com.
  3. ↑ "Company Overview of 3G Capital, Inc". Bloomberg Businessweek. Retrieved 8 January 2014.
  4. ↑ "3G Capital - Founding Partners". www.3g-capital.com. Retrieved 2018-04-08.
  5. ↑ Mahler, Daniel. "Zero-Based Budgeting Is Not a Wonder Diet for Companies". Harvard Business Review. Retrieved 30 June 2016.
  6. ↑ Cheng, Evelyn (2017-02-17). "3G and Buffett's Berkshire behind what could be the largest US purchase of a foreign company". CNBC. Retrieved 2017-12-14.
  7. 1 2 Dealbook (15 October 2010). "3G Gets Nearly 94% of Burger King Shares". NYT. Retrieved 9 September 2015.
  8. 1 2 Warner, Melodie (1 August 2012). "Burger King's New Menu, Marketing Boost Profit". WSJ. Retrieved 9 September 2015.
  9. ↑ "Tim Hortons confirms layoffs at headquarters, regional offices". CBC News. 27 January 2015. Retrieved 28 January 2015.
  10. ↑ "Kraft and Heinz merger to form world's fifth-largest food company". Reuters. 25 March 2015. Retrieved 25 March 2015.
  11. ↑ Primack, Dan (25 March 2015). "Is Buffett behind 3G Capital's $40 billion play for Kraft Foods?". Fortune. Retrieved 25 March 2015.
  12. ↑ Gelles, David, "Kraft and Heinz to Merge in Deal Backed by Buffett and 3G Capital", New York Times, March 25, 2015. Retrieved 2025-03-25.
  13. ↑ "3G Capital Website". Retrieved 23 February 2013.
  14. ↑ "Factbox: 3G Capital, Buffett's partner in Heinz buyout". Reuters. 14 February 2014. Retrieved 23 February 2013.
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