Beanz meanz… Berkshire Hathaway and 3G Capital
Heinz is to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital. The transaction is valued at $28 billion, with the price paid representing a 20% premium to Heinz’s closing share price of $60.48 on February 13, 2013.
“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.
“Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products,” said Warren Buffett, chairman and CEO of Berkshire Hathaway. “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.”
“We have great respect for the Heinz brands and the strong business that management and its employees operate around the world,” said Alex Behring, managing partner at 3G Capital. “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.”
Berkshire Hathaway and 3G Capital have pledged to maintain Pittsburgh as Heinz’s global headquarters, and to fulfil and continue its philanthropic support of community initiatives and related investments.
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.
