Bridgepoint Is Considering Sale of Burger King U.K., Sky Reports

(Bloomberg) --

Bridgepoint Group plans to sell the U.K. operations of Burger King next year in a bet on an accelerated recovery of Britain’s pandemic-hit restaurant industry, Sky reported.

The newly listed private equity group has started preliminary talks with investment banks about a sale of the fast-food chain, the news agency said, citing unidentified people with knowledge of the matter.

The discussions are unlikely to result in a formal sale process for another 12 months, though the process could begin in the early part of 2022 if sales continue to grow at a significant rate, Sky said.

Burger King U.K. owns about 150 of outlets and has been buying more back from franchisees in recent months in an effort to boost profitability, according to the report. The Burger King brand is owned globally by Restaurant Brands International, which is listed in New York. Bridgepoint owns about 80% of the U.K. unit’s real estate.

An initial public offering of the U.K. operation is also a possibility, Sky said.

Burger King U.K. was unavailable for comment, according to Sky, while Bridgepoint said no advisers had been appointed and that the company was exploring growth options for the Burger King U.K. business.

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