Kraft Heinz Company

The Kraft Heinz Company is the name of the resulting company for the proposed merger of Kraft Foods with Heinz.[1] The merger is backed by 3G Capital and Berkshire Hathaway, which will invest US$10 billion in the deal, making the Kraft Heinz Company worth about US$46 billion if the deal is approved.[2][3] The Kraft Heinz Company, if the merger deal is approved, will encompass 13 different brands.[4]

The merger, agreed by the boards of both companies, now requires ratification by the two companies' shareholders and regulatory authorities.[1][4] The resulting company is expected to become the fifth largest food and beverage company in the world,[5] and the third largest in the United States.[1] The company will have dual headquarters between Pittsburgh and Chicago, the respective headquarters of Heinz and Kraft.[6]

Under the proposed merger, Kraft's shareholders would receive 49% of shares in the combined company, plus an one-time US$16.50 dividend per share.[7] Fortune reports that sluggish growth for Kraft in the U.S. market is due to consumers turning to natural and organic ingredients.[8]

Alex Behring, 3G Capital's managing partner, will become the chairman of the new company; Bernardo Hees, Heinz's chief executive officer (CEO), will remain the CEO of the new company; and John Cahill, Kraft's CEO, will become the vice chairman of the new company.[8]

The merger would not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[6]

See also

References

  1. ↑ 1.0 1.1 1.2 "Kraft Foods to merge with Heinz". BBC News. 25 March 2015.
  2. ↑ "Kraft Foods to merge with ketchup maker Heinz". Reuters. March 25, 2015. Retrieved March 25, 2015.
  3. ↑ "3G Capital, Berkshire to Buy Kraft Foods, Merge It With Heinz". Bloomberg. March 25, 2015. Retrieved March 25, 2015.
  4. ↑ 4.0 4.1 "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. Retrieved 28 March 2015.
  5. ↑ Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World’s 5th-Largest Food Company". TIME magazine.
  6. ↑ 6.0 6.1 Teresa F. Lindeman (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette.
  7. ↑ Giammona, Craig. "Kraft Foods, Heinz to merge in deal backed by Warren Buffett, Tim Hortons owner". Financial Post. Postmedia Network. Retrieved 27 March 2015.
  8. ↑ 8.0 8.1 "1. Meet the new Kraft Heinz Company.". Fortune. 25 March 2015.

Further reading