Diageo sells $2.3B Burger King

Burger King: Home of the Whopper sells for $2.26 billion

LONDON, England (CNN) -- Diageo, the world's biggest drinks group, has agreed to sell its fast-food business Burger King to a consortium for $2.26 billion.

The British food and drinks group sold the 11,500-strong chain, known as the "Home of the Whopper," to a private equity consortium of Texas Pacific Group, Goldman Sachs Capital Partners and Bain Capital.

The consortium outbid other private equity groups to take control of the world's second-largest fast-food chain.

Diageo began an auction to sell the chain in March in order to concentrate on its drinks business.

"We believe we got a good price for these assets," Chief Executive Paul Walsh told CNN, adding that the restructure of the group is "comfortably ahead of where people thought we'd be."

Diageo, which makes Smirnoff vodka and Baileys creamy liqueur, sold its Pillsbury unit last year for $10.5 billion. The London-based company, which also makes Johnnie Walker whisky and Guinness beer, bought Seagram's drinks unit for $8 billion in a joint bid.

Burger King Chairman John Dasburg -- a former chief executive of Northwest Airlines -- was brought in to run the chain in February last year. Dasburg and his management, which turned around the once-struggling franchise, will be kept on by the new owners.

"We have had good progress in moving this brand forward, Dasburg said in a statement. "We believe we can increase customer satisfaction, market share and profits and lead this brand to be one of the top rated and preferred brands in the world."

Burger King opened its first outlet in Miami in 1954 and was purchased in 1989 by GrandMet, which later merged with Guinness to become Daigeo.

Daigeo (DGE) was up 4.7 percent to 713 pence in early afternoon trading ion London on Tuesday.