Diageo sells BK chain

Drinks giant Diageo ended its long-running attempt to offload fast-food chain Burger King by unveiling its £1.44bn (€2.26bn) sale today.

Diageo, which wants to focus on its more profitable drinks business, said it had agreed a deal with a group led by US private equity firm Texas Pacific.

The London-based firm first announced plans to either float or sell the 11,457-strong Burger King chain two years ago.

Chief executive Paul Walsh said the announcement represented an ``important milestone'' for Diageo and for the development of its brands, including Smirnoff vodka, Johnnie Walker scotch and Guinness.

He added: "Now we will focus all our management skills to deliver sustainable top and bottom line growth and create still greater value for our shareholders."

Of the Burger King restaurants, 10,386 are run under franchise, with the remainder wholly owned by Diageo. The Burger King chain, which was founded in 1954, is based in Miami.

Mr Walsh added the deal "provided for the future" of Burger King and its employees after a period during which sales have come under pressure.