The New York Times recently reported that the pending sale of
H. J. Heinz Company
) could earn its chief executive officer, William R. Johnson, a
hefty payday if he is asked to quit.
In case Johnson is let go, he would earn more than $200
million. As part of the payment, Mr. Johnson could get 'golden
parachute" compensations, stock and stock options awards and
Last month, Heinz, a leading ketchup maker agreed to be sold
to an investment group led by Warren Buffett's
Berkshire Hathaway, Inc.
) and private Brazilian investment firm, 3G Capital for $28
billion, including debt.
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
Berkshire Hathaway owns leading businesses across a variety of
industries, while 3G Capital is a global investment firm holding
stake in companies like fast food chain,
Burger King Worldwide, Inc
). Both Berkshire Hathaway and 3G Capital are known to invest in
iconic businesses and brands and broadening them further.
Heinz's shareholders will receive $72.50 per share, a 19%
premium to Heinz's all-time high share price. The deal is
expected to be closed in the third quarter of this calendar year.
Heinz will become a private company after the completion of the
Heinz has a robust global portfolio of leading brands, which
focuses on three attractive and growing food categories: ketchup
and sauces, meals and snacks, and infant/nutrition. The company's
largest and fastest growing product category is ketchup and
sauces led by Heinz, the iconic #1 ketchup brand.
Heinz carries a Zacks Rank #3. Another food company that has
been doing well consistently is
ConAgra Food, Inc
) - Zacks Rank #1 (Strong 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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