ONEX CORPORATION COMPLETES PURCHASE OF BURGER KING DISTRIBUTION SERVICES FROM BURGER KING CORPORATION
ONEX CORPORATION COMPLETES PURCHASE OF BURGER KING
DISTRIBUTION SERVICES FROM BURGER KING CORPORATION
TORONTO, June 30 /PRNewswire/ -- Onex Corporation today announced that it has completed the purchase of Burger King Distribution Services (BKDS) from Burger King Corporation, a subsidiary of Grand Metropolitan PLC. BKDS is the largest worldwide food-service distributor to the Burger King System.
BKDS distributes food and paper products to all of the Burger King company owned restaurants in the United States. In addition, BKDS services about 70 percent of Burger King's franchisees. 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. Annual revenues of BKDS will be approximately CDN $1.3 billion.
Onex invested approximately CDN $25 million of the CDN $30 million in shareholders' equity in BKDS for an initial 80 percent ownership interest. Mr. Tom Highland, President of BKDS, Mr. David Parker, a Miami businessman who will become Chairman of BKDS, and other members of BKDS management have also invested in the equity of the company.
Gerald W. Schwartz, President and CEO of Onex Corporation, stated ''Onex has acquired the best managed distribution business in the United States. BKDS is in an excellent position as the premier supplier to the world's second largest fast food company and we see significant growth opportunities with Burger King as well as other sectors of the food distribution industry."
Mr. Schwartz went on to state, ''I am pleased to have Mr. Tom Highland, Mr. David Parker and the management team of BKDS as partners and investors along with Onex in this acquisition.''
Mr. Tom Highland commented, ''The senior managers of BKDS and I are delighted to now be owners of the business along with Onex and David Parker. BKDS will now have new growth opportunities as a stand alone business with Onex as our major shareholder.''
Onex Corporation is a diversified company that operates through autonomous subsidiaries and industrial acquisition partnerships. It has 22,000 employees, with approximately 70 percent of its operations in the United States and the remainder primarily in Canada. Onex' annualized revenues of $3.2 billion also include Sky Chefs, Inc., Purolator Courier Ltd., Dayton Superior Corporation, Automotive Industries, Inc., Dura Mechanical Components, Inc., The Delfield Company, Johnstown America Corporation and Whitlenge Drink Equipment Limited.
/CONTACT: Anthony Melman of the Onex Corporation, 416-362-7711/ CO: Onex Corporation; Burger King Distribution Services ST: Toronto IN: SU: TNM LD -- NY100 -- 5412 06/30/92 18:52 EDT