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3G Capital

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3G Capital Inc.
Company typePrivate
IndustryInvestment management
Founded2004; 20 years ago (2004)
HeadquartersRio de Janeiro
New York City
Key people
Jorge Paulo Lemann
Alex Behring
(Managing partner)
Bernardo Hees
ProductsHedge funds, Private equity
Number of employees
50+
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 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.[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 create the world's fifth largest food company.[12][13] Heinz was being advised in the transaction by Lazard and Kraft by Centerview Partners.[14]

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.[15][16] 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 Rumo S.A. (the largest Latin American railroad and logistics company).[citation needed]

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. ^ "The lean and mean approach of 3G Capital". Financial Times. 2017-05-07.
  8. ^ "Can 3G Capital Keep Thriving on Acquisitions and Cost Cutting?". The New York Times. 2017-03-07.
  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, March 25, 2015. Retrieved 2025-03-25.
  15. ^ "3G Capital Website". Retrieved 23 February 2013.
  16. ^ "Factbox: 3G Capital, Buffett's partner in Heinz buyout". Reuters. 14 February 2014. Retrieved 23 February 2013.
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