Kraft to Merge with Heinz Creating Food Colossus
SEAFOODNEWS.COM [Bloomberg] by Craig Giammona and Matthew Boyle- March 25, 2015 -
Kraft Foods Group Inc. will merge with H.J. Heinz Co. in a deal orchestrated by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc., creating the third-largest food and beverage company in North America
Kraft shareholders will receive 49 percent of the stock in the combined entity, plus a special cash dividend of $16.50 a share, the companies said in a statement Wednesday. Berkshire and 3G will invest $10 billion in the new business, which will be known as Kraft Heinz Co. It will have dual headquarters in Pittsburgh and the Chicago area, with current Heinz Chief Executive Officer Bernardo Hees staying at the helm.
The deal creates a stable of household names -- everything from Heinz ketchup to Jell-O -- with revenue of about $28 billion.
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