Ketchup maker, H.J. Heinz Company's acquisition by 3G Capital
Berkshire Hathaway, Inc.
) closed last week on Jun 7.
In mid-Feb 2013, Heinz agreed to be acquired by an investment
group led by Warren Buffet's company, Berkshire Hathaway,and the
private Brazilian investment firm, 3G Capital, for $28 billion,
including debt. Heinz's shareholders overwhelmingly approved the
merger at a special meeting held in New York on Apr 30.
As per the terms of the pending merger, Heinz's shareholders
will receive $72.50 per share. Heinz became a private company
after completion of the acquisition and its common stock no
longer trades on the New York Stock Exchange.
Berkshire Hathaway, led by Warren Buffett, owns leading
businesses across a variety of industries, while 3G Capital is a
global investment firm holding stakes in companies like fast food
Burger King Worldwide, Inc
With the closing of the transaction, Burger King'schief
executive officer (CEO), Bernardo Hees became the CEO of Heinz.
Hees, who has played a pivotal role in growing profits at Burger
King, replaced Heinz's Chairman, President and CEO, William
Johnson who retired from his position on the same day. Heinz also
announced the appointment of Paulo Basilio as the Chief Financial
Officer of company.
Berkshire and 3G Capital are expected to benefit from Heinz's
robust global portfolio of leading brands, which focuses on three
attractive and growing food categories: ketchup and sauces, meals
and snacks, and infant/nutrition. Also, Heinz has a strong market
position where it is consistently delivering solid organic
growth, showing continued and strong improvement in the emerging
markets, making robust marketing investments, continuously
innovating and reducing expenses aggressively.
Other food companies that are currently doing well include
Flower Foods Inc.
), carrying a Zacks Rank #1 (Strong Buy), and
Campbell Soup Company
), carrying a Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
CAMPBELL SOUP (CPB): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
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