Heinz to be sold for $28 billion
Canned food giant Heinz is set to be bought by Warren Buffett’s Berkshire Hathaway company and private equity firm 3G Capital in a deal worth $28 billion.
Under the terms of the agreement, which has been unanimously approved by Heinz’s board of directors, Heinz shareholders will receive $72.50 in cash for each share of common stock they own.
“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,” says Heinz chairman, president and CEO William 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.”
Warren Buffett, chairman and CEO of Berkshire Hathaway, said: “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.”
Alex Behring, managing partner at 3G Capital, added: “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 recognise 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.”
Both Berkshire Hathaway and 3G Capital have pledged that Pittsburgh will remain as Heinz’s global headquarters.
The transaction, which is subject to approval by Heinz shareholders, receipt of regulatory approvals and other customary closing conditions, is expected to be completed in the third quarter of 2013.