Heinz Co. Announcing its Buying Kraft Foods Group Inc.
H.J. Heinz Co. is announcing Wednesday that its buying Kraft Foods Group Inc., creating the third-largest food and beverage company in North America.
The deal was executed by Brazilian investment firm 3G Capital, Heinz’ owner, and Berkshire Hathaway, owned by billionaire investor Warren Buffett.
Heinz Shareholders will own 51 percent of the combined company, with Kraft shareholders owning a 49 per cent stake. Kraft shareholders will also receive stock in the combined company and a special cash dividend of approximately $10 billion/$16.50 per share.
Boards from both companies have unanimously approved the deal, targeted to close in the second half of the year. However, it’s still pending approval from Kraft shareholders.
The combined brands will include Kraft, Heinz, Oscar Mayer, Classico Sauces, Cool Whip and Cheez Whiz.