Heinz Purchased by Berkshire Hathaway and 3G Capital for $28 Billion

By Bizclik Editor

 

H.J. Heinz Company, manufacturer of Heinz ketchup, announced today its entrance into a definitive merger agreement in which Heinz will be acquired by an investment consortium formed by Berkshire Hathaway and 3G Capital. Heinz will be purchased for $28 billion, or $72.50 in cash per share.

“The Heinz brand is one of the most respected brands in the global food industry and this historic transaction provides tremendous value to Heinz shareholders,” said Heinz Chairman, President and CEO William R. Johnson. “We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz. With Heinz stock recently at an all-time high and 30 consecutive quarters of organic topline growth, Heinz is being acquired from a position of strength. As a private enterprise, Heinz will have an opportunity to drive further growth and advance our commitment to providing consumers across the globe with great tasting, nutritious and wholesome products,” added Johnson.

Berkshire Hathaway and 3G Capital plan to keep Heinz headquartered in Pittsburgh and continue its community outreach efforts and other investments.

“Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products. Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes. We are very pleased to be a part of this partnership,” said Warren Buffett, Chairman and CEO, Berkshire Hathaway.

The transaction is expected to close after Heinz shareholder approval in the third quarter of 2013.

“We have great respect for the Heinz brands and the strong business that management and its employees operate around the world. We approached Heinz to explore how we might work together to expand the value of this storied brand. We fully recognize Heinz’s value and heritage and look forward to working together with Heinz’s employees, suppliers and customers as we invest in and support the company’s ongoing global growth efforts,” said Alex Behring, Managing Partner, 3G Capital.

Heinz sells 650 million bottles of ketchup annually and produces approximately “two single-serve packets of ketchup for every man, woman and child on the planet.”

Share

Featured Articles

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy

The best Michelin-starred restaurants that are meat-free

Sustainability