Cleary and Davis Polk grab key roles on BK IPO

New York-based Davis Polk & Wardwell and Cleary Gottlieb Steen & Hamilton advised on the $400m (£229m) Burger King IPO on the New York Stock Exchange announced on Thursday (16 February).

Cleary Gottlieb partner William Gorin led the team advising underwriters JP Morgan, Citigroup, Goldman Sachs and Morgan Stanley. Davis Polk advised Burger King, led by partner Jeffrey Small.

Texas Pacific Group, Bain Capital and funds managed by Goldman Sachs are the selling shareholders. The three companies bought Burger King for $1.5bn (£860m) in December 2002, from London-based drinks company Diageo.

Boston-based Bain and New York-based Goldman Sachs each own 31.3 per cent of the company, while Texas-Pacific, of Fort Worth, Texas, owns 35.2 per cent.

Burger King has 11,220 restaurants in 61 countries, and saw turnover of $1.92bn (£1.1bn) for the last fiscal year – about 18 per cent higher than the year before the buyout.

However several franchisee groups have filed for bankruptcy, including Sydran, which operated 226 restaurants, and Ameri King, which operated 329 restaurants.