3G Capital

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3G Capital Inc.
Company typePrivate
IndustryInvestment firm
Founded2004; 20 years ago (2004)
HeadquartersRio de Janeiro
New York City
Key people
Jorge Paulo Lemann
Alex Behring
(Managing partner)
Bernardo Hees
Productsbeer (AB InBev), food products (Kraft Heinz), restaurants (Burger King et others), department stores (Lojas Americanas), architectural and window coverings products (Hunter Douglas), online retail (B2W)
Number of employees
60+
Websitewww.3g-capital.com

3G Capital is a Brazilian-American 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: Anheuser-Busch InBev, Restaurant Brands International (Burger King, Tim Hortons, and Popeyes Louisiana Kitchen), Kraft Heinz as well as partnering with Berkshire Hathaway for its acquisitions.[5][6][7][8]

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.[9] Shareholders received $24.00 per share in cash.[9] Under new management, Burger King introduced a reworked menu and marketing strategies.[10] 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.[10]

In December 2014, the Canadian 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.[11]

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 form the world's fifth largest food company.[12][13] Heinz was being advised in the transaction by Lazard and Kraft by Centerview Partners.[14]

In 2019 the firm submitted bids for ThyssenKrupp AG, but stepped out the negotiations,[15] ThyssenKrupp Elevator Technology unit was bought by a consortium for €17.2 billion.[16][17]

In September 2021, Kraft Heinz announced that Hemmer, a Brazilian company focused on condiments and sauces, was being acquired for an undisclosed amount.[18] This acquisition follows the recent agreement with Assan Foods – a Turkey company focused on sauces – belonging to Kibar Holding, for approximately $100 million.[19]

On December 30, 2021, 3G Capital entered into a definitive agreement to acquire 75% of interest in Hunter Douglas, a global market leader in window coverings and a major manufacturer of architectural products.[20] The deal was completed on February 25, 2022, for approximately US$ 7.1 billion.[21]

3G Capital portfolio

Beverage

Food

Restaurants

Retailing

Manufacturing

E-commerce


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 in New York.[22][23] The state of incorporation is the Cayman Islands.[24]

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 8 April 2018.
  5. ^ Mahler, Daniel. "Zero-Based Budgeting Is Not a Wonder Diet for Companies". Harvard Business Review. Retrieved 30 June 2016.
  6. ^ Cheng, Evelyn (17 February 2017). "3G and Buffett's Berkshire behind what could be the largest US purchase of a foreign company". CNBC. Retrieved 14 December 2017.
  7. ^ "The lean and mean approach of 3G Capital". Financial Times. 7 May 2017.
  8. ^ "Can 3G Capital Keep Thriving on Acquisitions and Cost Cutting?". The New York Times. 7 March 2017.
  9. ^ a b Dealbook (15 October 2010). "3G Gets Nearly 94% of Burger King Shares". NYT. Retrieved 9 September 2015.
  10. ^ a b Warner, Melodie (1 August 2012). "Burger King's New Menu, Marketing Boost Profit". WSJ. Retrieved 9 September 2015.
  11. ^ "Tim Hortons confirms layoffs at headquarters, regional offices". CBC News. 27 January 2015. Retrieved 28 January 2015.
  12. ^ "Kraft and Heinz merger to form world's fifth-largest food company". Reuters. 25 March 2015. Retrieved 25 March 2015.
  13. ^ Primack, Dan (25 March 2015). "Is Buffett behind 3G Capital's $40 billion play for Kraft Foods?". Fortune. Retrieved 25 March 2015.
  14. ^ Gelles, David, "Kraft and Heinz to Merge in Deal Backed by Buffett and 3G Capital", New York Times, 25 March 2015. Retrieved 25 March 2025.
  15. ^ "3G Bids for Thyssenkrupp Elevators". Bloomberg.com. 12 November 2019. Retrieved 30 September 2021.
  16. ^ "3G Bids for Thyssenkrupp Elevators". Bloomberg.com. 21 January 2020. Retrieved 30 September 2021.
  17. ^ "thyssenkrupp sells Elevator Technology business for €17.2 billion to consortium of bidders led by Advent, Cinven and RAG foundation". thyssenkrupp. 27 March 2020. Archived from the original on 2020-02-27. Retrieved 30 September 2021.
  18. ^ "Kraft Heinz Enters Into Agreement to Acquire Brazilian Food Company Hemmer". ir.kraftheinzcompany.com. 23 September 2021. Archived from the original on 2021-09-30. Retrieved 29 September 2021.
  19. ^ "Kraft Heinz Announces Agreement to Purchase Assan Foods, Headquartered in Istanbul, Turkey". ir.kraftheinzcompany.com. 11 June 2021. Archived from the original on 2021-06-13. Retrieved 29 September 2021.
  20. ^ "3G CAPITAL TO ACQUIRE CONTROLLING INTEREST IN HUNTER DOUGLAS".
  21. ^ "3G CAPITAL COMPLETES ACQUISITION OF CONTROLLING INTEREST IN HUNTER DOUGLAS". Hunter Douglas IR. February 25, 2022. Retrieved June 12, 2022.
  22. ^ "3G Capital Website". Retrieved 23 February 2013.
  23. ^ "Factbox: 3G Capital, Buffett's partner in Heinz buyout". Reuters. 14 February 2014. Retrieved 23 February 2013.
  24. ^ Rocha, Euan; Ho, Solarina. "Burger King main shareholder the big tax winner in Tim Hortons deal". www.reuters.com. Reuters. Retrieved 22 October 2022.

External links

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