Heinz And Kraft Merge Creating World's 5th Largest Food And Beverage Company

Posted: Mar 25 2015, 5:44am CDT | by , Updated: Mar 26 2015, 3:24am CDT, in News | Latest Business News


Heinz and Kraft Merge creating World;s 5th largest Food and Beverage Company

H.J. Heinz and Kraft Foods have announced to merge, creating a food and Beverage giant.

H.J. Heinz Company and Kraft Foods Group, Inc. today announced to merge to create The Kraft Heinz Company, forming the third largest food and beverage company in North America and the 5th largest food and beverage company in the world.

“Together we will have some of the most respected, recognized and storied brands in the global food industry, and together we will create an even brighter future,” said John Cahill, Kraft Chairman and Chief Executive Officer. “This combination offers significant cash value to our shareholders and the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as we bring Kraft’s iconic brands to international markets. We look forward to uniting with Heinz in what will be an exciting new chapter ahead.”

The combined company to be named The Kraft Heinz Company and to be co-headquartered in Pittsburgh and the Chicago area. The new beverage and food giant will have revenues of approximately $28 billion with eight $1+ billion brands and five brands between $500 million-$1 billion.

Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft’s Boards of Directors, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. 

Warren Buffett, Chairman and CEO of Berkshire Hathaway said, “I am delighted to play a part in bringing these two winning companies and their iconic brands together. This is my kind of transaction, uniting two world-class organizations and delivering shareholder value. I’m excited by the opportunities for what this new combined organization will achieve.”

When the transaction closes, Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, will become the Chairman of The Kraft Heinz Company. John Cahill, Kraft Chairman and Chief Executive Officer, will become Vice Chairman and chair of a newly formed operations and strategy committee of the Board of Directors.

Bernardo Hees, Chief Executive Officer of Heinz, will be appointed Chief Executive Officer of The Kraft Heinz Company.

This huge merger will be the big topic today on Wall Street. The new Kraft Heinz company will be combined home of brands like A.1. Athenos, Capri Sun, Cheez Whiz, Jell-o, Kool-Aid, Kraft Macaroni & Cheese, MiO, Oscar Mayer, Miracle Whip, Philadelphia, Planters, Heinz Ketchup, Heinz Beans, Smart Ones, Classico, Lea & Perrins, T.G.I. Friday's snacks, Bagel Bites, Delimex, Nurture, Plasmon and Wattie's

Kraft and Heinz will host a conference call with investors to discuss the announcement at 8:30 a.m. EDT.

Live Event Dial-in Details:

Participant Toll-Free Dial-In Number: (888) 350-0137
Participant International Dial-In Number: +1 (970) 315-0478
Access code: 14828205

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.




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