With its shareholders overwhelmingly approving the merger,
H.J. Heinz Company ( HNZ ) moved a step
further in relation to its pending sale to 3G Capital and
Berkshire Hathaway, Inc. ( BRK.B ).
In mid-Feb 2013, Heinz agreed to be acquired by an investment
group led by Warren Buffet's company, Berkshire Hathaway,and
private Brazilian investment firm, 3G Capital, for $28 billion,
At a special meeting held in New York, 60% of the shareholders
of record as of Mar 18, 2013 cast a vote. 95% of the votes cast
were in favor of the merger agreement.
In late March, HNZ had announced early termination of the
Hart-Scott-Rodino waiting period. The transaction now remains
subject to some other customary closing conditions and regulatory
approvals. The transaction is expected to be closed either by the
end of second quarter or in the third quarter of this calendar
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. Heinz will become a private company after the
completion of the acquisition.
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
chain, Burger King Worldwide, Inc ( BKW ).
Both Berkshire Hathaway and 3G Capital are known to invest in
iconic businesses and brands and broaden them further. 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. The investment firms are acquiring Heinz
from a strong 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.
Heinz carries a Zacks Rank #2 (Buy). Another food company that
has been doing well consistently is Flower Foods
Inc. ( FLO
) which carries a Zacks Rank #1 (Strong Buy).BURGER KING WWD (BKW): Free Stock Analysis
ReportBERKSHIRE HTH-B (BRK.B): Free Stock Analysis
ReportFLOWERS FOODS (FLO): Free Stock Analysis ReportHEINZ (HJ) CO (HNZ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment