3G Capital and
Berkshire Hathaway, Inc.
), which are due to purchase ketchup giant,
H.J. Heinz Company
), recently announced the appointment of a new chief executive
officer (CEO) for the latter after closing of the
Heinz agreed to be acquired in mid February by an investment
group, led by Warren Buffet's company, Berkshire Hathaway, and
private Brazilian investment firm, 3G Capital, for $28 billion,
including debt. Berkshire Hathaway owns leading businesses across
a variety of industries, while 3G Capital is a global investment
firm holding stakes in many larger companies.
3G Capital and Berkshire Hathaway appointed the current CEO of
the fast food chain,
Burger King Worldwide, Inc
), Bernardo Hees, as the new CEO of Heinz. 3G Capital holds a
large equity stake in Burger King. He will assume the new role at
Heinz after the takeover transaction closes which is expected
either by the end of second quarter or in the third quarter of
this calendar year. Thereafter, Hees will become the
vice-chairman of Burger King and continue to serve on the
latter's executive committee. He will be replaced by Daniel
Schwartz as the CEO of Burger King.
Hees, who has played a pivotal role in growing profits at
Burger King, will replace Heinz's current Chairman, President and
CEO, Bill Johnson. Johnson will continue in his capacity
until the transaction in complete.
The New York Times reported early last month that Heinz CEO
will earn more than $200 million if he is asked to quit. As part
of the payment, Johnson could get "golden parachute"
compensations, stock and stock options awards and other
Johnson has pioneered Heinz for 15 years and played a pivotal
role in this landmark transaction for the food industry. Over the
years, he has brought Heinz to a strong position where it is
consistently delivering solid organic growth, showing continued
strong improvement in emerging markets, making robust marketing
investments, continuously innovating and saving costs
As per the terms of the pending merger, Heinz's shareholders
will receive $72.50 per share, a 19% premium to its all-time high
share price. Following the acquisition, Heinz will become a
Heinz has scheduled a special shareholder meeting in New York
on Apr 30 to vote on its pending sale. In addition to
shareholders' approval at the meeting, the transaction remains
subject to some other customary closing conditions and regulatory
approvals. Antitrust clearance has been granted in most
Heinz carries a Zacks Rank #3. Another food company that has
been doing well consistently is
ConAgra Foods, Inc
) - Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
CONAGRA FOODS (CAG): Free Stock Analysis
HEINZ (HJ) CO (HNZ): Free Stock Analysis
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