In a landmark transaction for the food industry, leading
ketchup maker
H. J. Heinz Company
(
HNZ
) agreed to be acquired by an investment group led by Warren
Buffet's company,
Berkshire Hathaway, Inc.
(
BRK.B
) and private Brazilian investment firm, 3G Capital for $28
billion, including debt.
Berkshire Hathaway, led by Warren Buffett, 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
(
BKW
).
Heinz's shareholders will receive $72.50 per share, a 19%
premium to Heinz's all-time high share price. The transaction has
been approved unanimously by the board but is subject to
shareholder and regulatory approvals. The deal is expected to be
closed in the third quarter of this calendar year. Heinz will
become a private company after the acquisition is complete. The
acquirers have promised to maintain Heinz's headquarters at
Pittsburgh.
Both Berkshire Hathaway and 3G Capital are known to invest in
iconic businesses and brands and broadening 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 strong
improvement in emerging markets, making robust marketing
investments, continuously innovating, and saving costs
aggressively.
Yesterday, another huge consumer staples company,
PepsiCo, Inc.
(
PEP
) announced impressive fourth quarter results, beating the Zacks
Consensus Estimate for both revenue and earnings.
BURGER KING WWD (BKW): Free Stock Analysis
Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis
Report
PEPSICO INC (PEP): Free Stock Analysis Report
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