H.J. Heinz Company and Kraft Foods Group, Inc. have announced they will merge to become The Kraft Heinz Company, the third largest food and beverage company in North America.
Warren Buffet’s Berkshire Hathaway and Brazil-based 3G Capital (the owner of Heinz) will invest an additional $10 billion in The Kraft Heinz Company. Under the terms of the agreement, already approved by both Heinz and Kraft’s boards of directors, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51%.
The new company will have revenues of approximately $28 billion with eight $1+ billion brands and five brands between $500 million-$1 billion. Of note, the new company will sell the Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia brands, to name a few.
The Kraft Heinz Company will be co-headquartered in Pittsburgh and the Chicago area.
See the company press release for more specifics, including dividend numbers, here.
Please register to read and comment.