1 Updates
Heinz Ketchup Bought by Warren Buffet
Photo Credit: Heinz

Heinz Ketchup Bought by Warren Buffet

Feb 14 2013, 7:29am CST | by

Warren Buffet owns his own ketchup maker now.

H.J. Heinz Company (Heinz Ketchup) today announced that it has entered into a definitive merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital....

Filed under: news

Full Story below YouTube Videos

 
 

 

1 year ago

Heinz Ketchup Bought by Warren Buffet

Feb 14 2013, 7:29am CST | by

Warren Buffet owns his own ketchup maker now.

H.J. Heinz Company (Heinz Ketchup) today announced that it has entered into a definitive merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital.

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, in a transaction valued at $28 billion, including the assumption of Heinz’s outstanding debt. The per share price represents a 20% premium to Heinz’s closing share price of $60.48 on February 13, 2013, a 19% premium to Heinz’s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price.

“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.

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 said, “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.”

Understanding the need to preserve Heinz’s values, heritage and community connections, Berkshire Hathaway and 3G Capital have pledged to maintain Pittsburgh as its global headquarters, and to fulfill and continue its philanthropic support of community initiatives and related investments.

The transaction will be financed through a combination of cash provided by Berkshire Hathaway and affiliates of 3G Capital, rollover of existing debt, as well as debt financing that has been committed by J.P. Morgan and Wells Fargo. Berkshire Hathaway owns and invests in leading businesses across a variety of industries, including numerous iconic brands. 3G Capital is a global investment firm focused on long-term value creation, with a particular emphasis on building and expanding great brands and businesses.

The transaction is subject to approval by Heinz shareholders, receipt of regulatory approvals and other customary closing conditions, and is expected to close in the third (calendar) quarter of 2013.

Advisors for this transaction include: Centerview Partners and BofA Merrill Lynch as financial advisors to Heinz and Davis Polk & Wardwell LLP as legal advisor to Heinz. Moelis & Company acted as advisors to the Transaction Committee of Heinz’s Board of Directors and Wachtell, Lipton, Rosen & Katz served as legal advisor to the Transaction Committee of Heinz’s Board of Directors.

Lazard served as lead financial advisor. J.P. Morgan and Wells Fargo also served as financial advisors to the investment consortium. Kirkland & Ellis LLP is acting as legal advisor to 3G Capital. Munger, Tolles & Olson LLP is acting as legal advisor to Berkshire Hathaway.

 

Don't miss ...

 

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr (Google) is the founder of I4U LLC and is a news junkie. He is posting hot trending stories across the broad range of Balla Network sites. Tip Luigi with your hot trending news and memes here.

 

blog comments powered by Disqus

Latest stories

Do You Have The 'Stickability' To Be A Successful Entrepreneur?
It’s no secret that successful entrepreneurs have something special that sets them apart from just the dabblers and hobbyists, but exactly what is it that’s different? Every business venture runs into obstacles,...
 
 
The Masters Post Mortem And Prognosis Without Tiger Woods
The Masters Post Mortem And Prognosis Without Tiger Woods
null Before the Masters, I suggested the leaders of golf carefully examine this 2014 event without Tiger Woods. It would be a forecast of the future of golf without him, which is, of course, inevitable. The examination...
 
 
'X-Men: Days Of Future Past' Gets One Last Trailer
'X-Men: Days Of Future Past' Gets One Last Trailer
I suppose I should have seen this coming. I spent the last three months praising the relative restraint of the X-Men: Days of Future Past marketing campaign. Up until three weeks ago, we had only seen a single trailer,...
 
 
Bruins Tickets Have Biggest Face Price Discount For 1st Round Of NHL Playoffs
In three out of the last four season, the Bruins have faced an original six team in the first round of the playoffs. This year, they’ll face off against the Detroit Red Wings,  a team they haven’t met in the playoffs in...
 
 
 

Latest from the Network

Do You Have The 'Stickability' To Be A Successful Entrepreneur?
It’s no secret that successful entrepreneurs have something special that sets them apart from just the dabblers and hobbyists, but exactly what is it that’s different? Every business venture runs into obstacles,...
Read more on Business Balla
 
The Masters Post Mortem And Prognosis Without Tiger Woods
null Before the Masters, I suggested the leaders of golf carefully examine this 2014 event without Tiger Woods. It would be a forecast of the future of golf without him, which is, of course, inevitable. The examination...
Read more on Business Balla
 
'X-Men: Days Of Future Past' Gets One Last Trailer
I suppose I should have seen this coming. I spent the last three months praising the relative restraint of the X-Men: Days of Future Past marketing campaign. Up until three weeks ago, we had only seen a single trailer,...
Read more on Business Balla
 
Bruins Tickets Have Biggest Face Price Discount For 1st Round Of NHL Playoffs
In three out of the last four season, the Bruins have faced an original six team in the first round of the playoffs. This year, they’ll face off against the Detroit Red Wings,  a team they haven’t met in the playoffs in...
Read more on Business Balla
 
Don't Underestimate Big Data
The techniques of big data have been criticized recently in a post by Tim Harford among others. It’s quite easy to imagine the potential here has been exaggerated, and a core point about the importance of theory in a...
Read more on Business Balla
 
Even Recreational Marijuana May Be Linked To Brain Changes
Adding to earlier evidence that marijuana may be linked to lasting neurological changes, a new study in the Journal of Neuroscience today finds that even casual pot smoking may have an effect on the size and structure...
Read more on Business Balla
 
Man Pulls Submachine Gun Over 22¢ Tax: 'I'm Tax Exempt'
A Chicago man allegedly brandished a submachine gun in a store. No, he wasn’t robbing it. He just didn’t want to pay a 22-cent tax on a $1.79 two-liter bottle of soda. Taxes are annoying, especially this time of year....
Read more on Business Balla
 
Wireless industry makes anti-theft commitment
SAN FRANCISCO (AP) — A trade group for wireless providers said Tuesday that that nation's biggest mobile device manufacturers and carriers will soon put anti-theft tools on the gadgets to try to deter rampant smartphone...
Read more on Business Balla
 
Paul Walker's brothers help complete movie
Paul Walker's younger brothers will help complete his final movie, 'Fast & Furious 7.' Producers confirmed on Tuesday (04.15.14) that Caleb and Cody Walker have signed on to shoot the remaining scenes featuring the...
Read more on Celebrity Balla
 
Wireless industry makes anti-theft commitment
SAN FRANCISCO (AP) — A trade group for wireless providers said Tuesday that that nation's biggest mobile device manufacturers and carriers will soon put anti-theft tools on the gadgets to try to deter rampant smartphone...
Read more on Apple Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla