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BURGER KING CORPORATION REACHES AGREEMENT TO SELL BURGER KING DISTRIBUTION SERVICES

 BURGER KING CORPORATION REACHES AGREEMENT
 TO SELL BURGER KING DISTRIBUTION SERVICES
 MIAMI, April 13 /PRNewswire/ -- Burger King Corporation, a subsidiary of Grand Metropolitan PLC, today announced it has reached an agreement to sell its in-house distribution business, Burger King Distribution Services (BKDS), to Canadian-based ONEX Corporation. BKDS is the largest worldwide food-service distributor to the Burger King System. The sale, which is conditional on certain regulatory approvals and completion of the financing agreements, is expected to be finalized on or before June 30, 1992.
 Burger King Distribution Services distributes food and paper products to all of the Burger King company-owned restaurants in the U.S. In addition, BKDS is one of 17 approved distributors for the entire Burger King System. Employing 1,500 people, BKDS operates 21 distribution centers throughout the U.S., totaling over 750,000 square feet, and operates a fleet of trucks, serving restaurants in all 50 states.
 The new company will be an autonomous corporation and will be independent of Burger King Corporation. It will continue to exclusively service all of the Burger King company-owned restaurants in the U.S., and is approved as a distributor for the entire Burger King System. The Burger King System and its customers will continue to receive the same level of quality products and distribution services from the new company and there will be no interruption of the services presently provided. The agreement with ONEX has no effect on the approved status of the other 16 independent distributors.
 Barry J. Gibbons, chief executive officer of Burger King Corporation commented, "As Burger King Corporation moves to concentrate on its core business of selling franchises and providing quality food products to customers worldwide, it is now strategically the right time to divest ourselves of the distribution business. This agreement with ONEX enables us to completely focus our efforts on building the global Burger King brand."
 Gerald W. Schwartz, president and CEO of ONEX Corporation stated that, "The acquisition is an opportunity to purchase the best managed distribution system business in the U.S. BKDS is in an advantageous position as a premier supplier to the world's second-largest fast-food company and we see significant North American and international growth opportunities with Burger King."
 Schwartz added, "ONEX will invest approximately $20 million of the equity required to acquire BKDS. In addition, one of ONEX' key investment criteria is to have the management of the acquired company invest in the purchase with us. I am delighted that Tom Highland, president of BKDS, will join the new company in his same capacity and that he and his senior management team will participate in the acquisition and ongoing ownership of the acquired company. As well, Mr. David R. Parker, an independent investor in the new company, will become its chairman. The balance of the financing to complete the purchase will be provided by lenders on a basis that will be without recourse to BKDS's shareholders."
 Tom Highland commented, "I am pleased to have ONEX and David Parker as partners. Their commitment to service excellence and the use of information technology to create competitive advantage are completely consistent with our values which have led to so much success at BKDS in the last four years."
 Under the agreement, the new company will retain all current BKDS employees. It will be based in Miami.
 ONEX, a publicly traded corporation, had 1991 sales of Cdn $1.7 billion, assets of Cdn $1.3 billion and 22,000 employees. It operates through autonomous subsidiaries that include Purolator Courier Ltd. in Canada; and, in the United States: Sky Chefs, Inc., Automotive Industries, Inc., Dura Mechanical Components, Inc., The Delfield Company, Dayton Superior Corporation and Johnstown America Corporation. ONEX has approximately 80 percent of its operations in the United States.
 Burger King Corporation is a subsidiary of Grand Metropolitan PLC, one of the United Kingdom's largest international companies. GrandMet is a world leader in the food, drinks, and retailing sectors with sales of approximately $15 billion. Other U.S. subsidiaries of GrandMet include: The Pillsbury Company, Haagen-Dazs, ALPO Petfoods, Carillon Importers, Heublein, Inc., The Paddington Corporation, and Pearle, Inc. Burger King Corporation and its franchisees operate more than 6,400 restaurants in 41 countries worldwide. In fiscal year 1991, Burger King had systemwide sales of $6.2 billion.
 -0- 4/13/92
 /CONTACT: Cori Zywotow or Michael Evans of Burger King Corp., 305-378-7277; or Gerald Schwartz at ONEX Corp., 416-362-7711/ CO: Burger King Corporation; ONEX Corp. ST: Florida IN: LEI SU: TNM


JB-AW -- FL005 -- 7599 04/13/92 09:20 EDT
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Date:Apr 13, 1992
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