Heinz / Kraft
Pittsburgh-based H.J. Heinz Co. said March 26 it will acquire Northfield, Illinois-based Kraft Foods Group Inc. in a deal backed by billionaire Warren Buffett’s Berkshire Hathaway and Brazilian private equity firm 3G Capital. The deal is valued at $45 billion by the Associated Press. The two private equity funds purchased Heinz in June 2013.
The merged entity, The Heinz Kraft Co., will have a market capitalization of about $40 billion, with combined revenues of $28 million. It will be co-headquartered in Pittsburgh and Northfield. Current Heinz shareholders will own 51 percent of the combined entity, and Kraft shareholders will maintain some stock ownership, representing a 49 percent ownership in the company. Berkshire Hathaway and 3G Capital also invested $10 billion to pay existing Kraft shareholders $16.50 a share upon closing as a special cash dividend.
