3G Capital

3G Capital is a global investment firm and private partnership built on an owner-operator approach to investing over a long-term horizon. Founded in 2004, 3G Capital evolved from the Brazilian investment office of Jorge Paulo Lemann, Carlos Alberto Sicupira, and Marcel Herrmann Telles. 3G Capital is led by Alex Behring, Co-Founder and Co-Managing Partner, and Daniel Schwartz, Co-Managing Partner.

The firm is best known for its long-term investments in Anheuser-Busch InBev, Restaurant Brands International (Burger King, Tim Hortons, Firehouse Subs, and Popeyes Louisiana Kitchen), Hunter Douglas, Kraft Heinz as well as partnering with Berkshire Hathaway for its acquisitions.

Notable Deals

In 2010, the company acquired Burger King for $3.3 billion, and subsequently took the company private. Under new management, Burger King went on to introduce a reworked menu and innovative marketing strategies.

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.

In December 2014, the Canadian government approved the purchase of Tim Hortons by 3G Capital for $12.5 billion, creating Restaurant Brands International, the world's third largest quick service restaurant company and a new global powerhouse.

In March 2015, 3G Capital partnered with Warren Buffett to acquire Kraft Foods for $40 billion, and merged it with Heinz to form the world's fifth largest food company. In September 2021, Kraft Heinz announced that Hemmer, a Brazilian company focused on condiments and sauces, was acquired for an undisclosed amount. The acquisition followed an agreement with Assan Foods – a Turkish company focused on sauces – belonging to Kibar Holding, for approximately $100 million.

Restaurant Brands International went on to acquire Popeyes Louisiana Kitchen, Inc. in 2017 for $1.8 billion, and Firehouse Restaurant Group Inc. for $1.0 billion in 2021. 3G Capital Co-Managing Partner Daniel Schwartz who served as CFO (Jan. 2011 to Mar. 2013), COO (Mar. 2013 to Jun. 2013), and CEO (Jun. 2013 to Jan. 2019) is credited for turning around Burger King and later growing the Restaurant Brands International holding group. After stepping down as CEO, Daniel Schwartz went on to serve as Co-Chairman of the Board alongside Alex Behring from 2019 to 2021 and both continue to serve on the Board of Directors today.

Since its 2010 acquisition of Burger King Holdings, 3G Capital has been the company's largest shareholder, supporting its global growth transformation including the creation of RBI and acquisitions of Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs, generating approximately twenty-one times in total shareholder returns.

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. The deal was completed on February 25, 2022, for approximately US $7.1 billion. 3G Capital Partner João Castro Neves was appointed Hunter Douglas Group CEO.

In 2023's fourth quarter 3G Capital sold off its 16.1% stake in Kraft Heinz. The sale marks the end of an era for 3G because their investment playbook based on cost-cutting measures had success in all previous investments. After a disastrous quarter for Kraft Heinz in 2019, some investors pointed fingers at 3G’s penchant for strong cost-cutting without an adequate attention to innovation.

3G Capital Portfolio

Restaurants

• Restaurant Brands International
  • Burger King
  • Tim Hortons
  • Popeyes
  • Firehouse Subs

Beverages

• AB InBev
  • Anheuser-Busch
  • InBev
  • AmBev

Manufacturing

• Hunter Douglas

Offices and Management

3G Capital is headquartered in New York City, and is led by Alex Behring, Co-Founder and Co-Managing Partner, and Daniel Schwartz, Co-Managing Partner.

References

External links

• Official website