Buffett, 3G Capital To Buy H.J. Heinz
Warren Buffett's Berkshire Hathaway and 3G Capital will buy H.J. Heinz. for $72.50 a share, or $23.2 billion in cash.
Including debt assumption, Heinz valued the deal at $28 billion -- which it called the largest in food-industry history.
In addition to the iconic brand's ketchup and condiment products, Heinz makes products including Classico spaghetti sauces, Smart Ones frozen meals and Ore-Ida potatoes.
Berkshire Hathaway and 3G said that Heinz will remain headquartered in Pittsburgh, and have "an opportunity to drive further growth" as a private enterprise, reported The Huffington Post.
Heinz, which reported sales of $11.6 billion last year, has looked overseas for growth in recent times, including a 2010 acquisition of China's Foodstar, which makes Master soy sauce and fermented-bean curd products. Heinz projects that emerging markets will account for one-quarter of its sales.
The new owners have not yet provided any specifics about potential structural or operational changes.
HuffPo quoted Brian Sozzi, chief equities analyst for NBG Productions, as noting that Heinz's brand equity, built up over more than 140 years (it was founded in 1869), has enabled the company to raise prices even in today's intensely competitive grocery environment.
"There isn't going to be another Heinz brand," he said. "It has a durable competitive advantage."
Recent Marketing Daily Articles
-
Balance Bar Unveils 1st National TV Ads In 10+ Years May 22, 6:26 a.m.
Balance Bar -- one of America’s first nutrition/energy bar products (launched in 1992) -- is looking ... -
Crowne Plaza Measures PGA Tour Sleep Habits May 21, 11:21 p.m.
Just in time for the Crowne Plaza Invitational at Colonial tournament this week, Crowne Plaza Hotels ... -
Dodge Goes Social With 'Defiance' May 21, 4:44 p.m.
Chrysler LLC's Dodge, which has category-exclusive sponsorship of the "Defiance" TV show and online game for ... -
Microsoft Unveils Xbox One May 21, 2:34 p.m.
For a presentation that was obstensibly about a new gaming console, Microsoft’s unveiling of its next-generation ... -
Telematics Ecosystem Booming, But Caution Advised May 21, 2:05 p.m.
The head of marketing for, say, Starbucks, is probably thinking about cars. Specifically, how to go ... -
Sony Touts Ultra High-Definition TVs May 21, 12:19 p.m.
We’ve been through the HDTV era and the 3DTV era -- now get ready for the ... -
Destination XL's Pixelated Privates Cause Controversy May 21, 11:03 a.m.
Specialty retailer Destination XL is Super Sizing itself, and not everyone is comfortable with its frank ... -
Skyy Launches 'Be Part Of The Art' May 21, 5:57 a.m.
To support the debut of its new Skyy Infusions Moscato Grape variety, Skyy Vodka has launched ... -
Miller64 Partners With Former Pro Athletes May 20, 10:30 p.m.
Miller64 is launching "GO64," a summer-long initiative that will include local events, celebrity appearances, giveaways and ... -
Vespa Looks Back: 50 Years Of 50cc's May 20, 4:36 p.m.
Vespa has been tooling about since the ’40s, and sidelining as a movie star since the ...
Be the first to comment on "Buffett, 3G Capital To Buy H.J. Heinz"
Leave a Comment