Heinz Confirms It Will Be Acquired By Buffett In $28 Billion Transaction At $72.50/Share

Tyler Durden's picture

Just released by Heinz. Luckily, the brand new US Secretary of State has a full conflict of interest release.

H.J. Heinz Company Enters Into Agreement to Be Acquired by Berkshire Hathaway and 3G Capital

H.J. Heinz Company (NYSE: HNZ) (“Heinz”) today announced that it has entered into a definitive merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital.

Under the terms of the agreement, which has been unanimously approved by Heinz’s Board of Directors, Heinz shareholders will receive $72.50 in cash for each share of common stock they own, in a transaction valued at $28 billion, including the assumption of Heinz’s outstanding debt. The per share price represents a 20% premium to Heinz’s closing share price of $60.48 on February 13, 2013, a 19% premium to Heinz’s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price.

“The Heinz brand is one of the most respected brands in the global food industry and this historic transaction provides tremendous value to Heinz shareholders,” said Heinz Chairman, President and CEO William R. Johnson. “We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz. With Heinz stock recently at an all-time high and 30 consecutive quarters of organic topline growth, Heinz is being acquired from a position of strength. As a private enterprise, Heinz will have an opportunity to drive further growth and advance our commitment to providing consumers across the globe with great tasting, nutritious and wholesome products,” added Johnson.

Warren Buffett, Chairman and CEO of Berkshire Hathaway said, “Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products. Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes. We are very pleased to be a part of this partnership.”

Alex Behring, Managing Partner at 3G Capital said, “We have great respect for the Heinz brands and the strong business that management and its employees operate around the world. We approached Heinz to explore how we might work together to expand the value of this storied brand. We fully recognize Heinz’s value and heritage and look forward to working together with Heinz’s employees, suppliers and customers as we invest in and support the company’s ongoing global growth efforts.”

Understanding the need to preserve Heinz’s values, heritage and community connections, Berkshire Hathaway and 3G Capital have pledged to maintain Pittsburgh as its global headquarters, and to fulfill and continue its philanthropic support of community initiatives and related investments.

The transaction will be financed through a combination of cash provided by Berkshire Hathaway and affiliates of 3G Capital, rollover of existing debt, as well as debt financing that has been committed by J.P. Morgan and Wells Fargo. Berkshire Hathaway owns and invests in leading businesses across a variety of industries, including numerous iconic brands. 3G Capital is a global investment firm focused on long-term value creation, with a particular emphasis on building and expanding great brands and businesses.

The transaction is subject to approval by Heinz shareholders, receipt of regulatory approvals and other customary closing conditions, and is expected to close in the third (calendar) quarter of 2013.

Advisors for this transaction include: Centerview Partners and BofA Merrill Lynch as financial advisors to Heinz and Davis Polk & Wardwell LLP as legal advisor to Heinz. Moelis & Company acted as advisors to the Transaction Committee of Heinz’s Board of Directors and Wachtell, Lipton, Rosen & Katz served as legal advisor to the Transaction Committee of Heinz’s Board of Directors.

Lazard served as lead financial advisor. J.P. Morgan and Wells Fargo also served as financial advisors to the investment consortium. Kirkland & Ellis LLP is acting as legal advisor to 3G Capital. Munger, Tolles & Olson LLP is acting as legal advisor to Berkshire Hathaway.

Press Conference / Webcast

Heinz and 3G Capital invite media to attend a joint press conference today, February 14, at 11 a.m. Eastern Time at Heinz World Headquarters, One PPG Place, Suite 3100 in Pittsburgh, PA.

The press conference will be hosted by:

  • William R. Johnson, Heinz Chairman, President and Chief Executive Officer
  • Alex Behring, Managing Partner, 3G Capital

A live broadcast of the press conference will be available via satellite (details below) and a video webcast (listen only) of the press conference will be available in real-time and archived for playback on the company website, www.heinz.com.

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HomeBrewPrepper's picture

How convenient squakbox had several brand new Heinz ketchup bottles in view seconds after the buyout was announced. Smells fishy or is that Becky.

SeverinSlade's picture

buying a company at a premium to its all time high share price...that is smart investing right there. maybe uncle warren just wanted to bathe in ketchup

bania's picture

It does remove bad smells after all

Buckaroo Banzai's picture

Kerry: Look, you know I'm on your side. I mean, in the most general ideological sense. But I'm not really comfortable with this job the way you've laid it out.

Jarrett: Bullshit. Quit pretending you have a conscience.

Kerry: (Laughs) You know THAT'S not the problem.

Jarrett: Then what IS the problem.

Kerry: You're asking me to play a pivotal role in destroying the United States as we know it. If this goes wrong, I'm going to be one of the first ones they put up against the wall to be shot.

Jarrett: Jesus. They told me you were chickenshit, the way you faked your Vietnam service. But I figured you would have grown a set by now. Teresa really ate your balls, didn't she?

Kerry: Hey, fuck you. This is serious shit we are talking about here. You're putting me on point to organize the UN occupation of the country.

Jarrett: I can't believe this shit you're talking. You're white, rich, and connected. Hey-- Skull and Bones, asshole. If everything goes sideways, you're telling me you won't be riding a ratline to paraguay?? Son of a bitch. I'm black, and Iranian, and I'm the most powerful person in the country, and the only person I knew was Bill Ayers. So fuck you. Up against the wall??? SHEEEEITTT. I'll be the first one up against the wall, douchebag, while your skinny white ass is on its way to South America.

Kerry: Look. I get that. You're not picking up what I'm putting down, Valerie. With RISK, there must be a REWARD. Get it?

Jarrett: Finally, we're talking a language I can understand. Or at least respect. OK what are you looking for?

Kerry: Get me out of Heinz.

Jarrett: What, Teresa?? You want us to do Teresa??

Kerry: (Laughs) Oh shit that's funny. No, no, no. Heinz, the company. I want to cash out of that motherfucker. You know, before the stock market goes to zero??

Jarrett: (Laughs) Oh right. Of course. Shit that's easy. I know exactly who to call on this. Give me a few weeks, and consider it done.

DaveyJones's picture

buffett buys ketchup

cool, now both are a vegetable

The Butchers Dog's picture

This is Buffet and Gates cornering the water supply. Between Coka-Cola and Heinz, Buffet probably controls quite a bit of the world's drinking water.

Buffet in the food industry (besides banking) only means control of the people.

i.e. when you bitch about loosing all your savings they will tell you to shut up or no drinking water.

Cdad's picture

The combination of price paid for this company, plus the octogenarian dialogue I am listening to on The BlowHorn [CNBC] this morning, would horrify me...IF I owned shares in Berkshire.

sunnydays's picture

So Buffet controls banks (Wells Fargo) railroads/transportation - food - media- housing (Clayton) and everything else in-between.  I don't believe having one man/company controlling all the most important aspects of our lives and living exsistence is a good idea.   What doesn't he own that affects us all?  A lot of power in one man's hands.

GetZeeGold's picture



The Russian foreign minister has no comment......and doesn't plan on returning the phone call anytime soon.


Seems a chasm has developed between the US and Mother Russia. Maybe John should put on his medals and blue jeans and try again.

SafelyGraze's picture

they hate us for our ketchups

ArkansasAngie's picture

Since we know buffet was/is the biggest individual bailoutee ... As a tax payer ... What is my personal percent ownership?

The rich get richer and the rest of us keep giving our blood sweat and tears to make it so.

Hey warren ... How about your voluntarily file for chapter 7 right after you return all the government money that Timmy and Benny (and Obama) gave you

What a crock of odoriferous material

CrimsonAvenger's picture

Maybe the Russians will take Kerry's call now.

HelluvaEngineer's picture

Now with more corn syrup in the Ketchup for you useless eaters!

Sudden Debt's picture

I'm more a Mayo guy myself...

GetZeeGold's picture



You're in luck.....they make that too.

Bobbyrib's picture

I need a new ketchup brand. Any recommendations? Maybe Hunts has a line of ketchup that doesn't taste like corn syrupy crap.

BeerBrewer09's picture

Sriracha by Huy Fong foods is a way better condiment:

The Sriracha Hot Chili Sauce recipe has not changed since 1983. The bottle lists the ingredients "Chili, sugar, salt, garlic, distilled vinegar, potassium sorbate, sodium bisulfite and xanthan gum." Huy Fong Foods' chili sauces are made from ripe red jalapeño chili peppers and contain no added water or artificial colors. The company formerly used serrano chilis but found them difficult to harvest.

DaveyJones's picture

Think we need a whole new food brand for the GMO world

maybe "Hurts"

gbresnahan's picture

i like my meat raw

booboo's picture

Warren is going to have a hard time wrestling the State Department away from the Communist.

GetZeeGold's picture



Word is capitalist Russians hate marxists....they don't even want to talk to them.

Sudden Debt's picture

The Heinz brand is one of the most respected brands in the global food industry



they get bailed out...

mofreedom's picture

cock sucker never worked a day in his life, except at destroying America, fucking fukin fucker.

SoundMoney45's picture

Nothing like uncle warren trading a little fixed interest debt paper for some tangible assets.  I pity the muppets who just had their tangible assets converted to cash.

San Diego Gold Bug's picture

Should have sold in December......less taxes!

optimator's picture

Early in the morning, but isn't there a rule that says when you get a Government appointment you have to sell you holdings, but in return for that you're not taxed on it?  That's where Paulson made his real money, no taxes on his sale.

PulledPorkBBQ's picture

Are they stealing the next 20 years of their earnings to stuff in their pockets, and loading Heinz up with unpayable debt, like Carlyle did with Booz Allen?

you can't fix stupid's picture

damn, another brand on the ban list. wtf am I going to dip my chick-fil-a fries in now?

StychoKiller's picture

Chinese mustard mixed with soy sauce...yowzuh!

Aegelis's picture

There's a ketchup and all-you-can-eat buffet restaurant joke in here somewhere.  Anyone find one yet?

ZeroAvatar's picture

Stock up now on condiment packages of ketchup and avoid the rush.

rsnoble's picture

Another filthy rich puke fuck politician exclaiming "The American People" every 5 fucking seconds.

apberusdisvet's picture

The underlyingpoint is not discussed.  Kerry is a powerful elite, or inbred doofus who married right; take your pick.  Knowing what he does about what's coming down the pike, I assume he told his wife to cut a deal.

Aegelis's picture

I don't think he can do that while her hand is pulling the lever in his back and doing that funny voice.

lizzy36's picture

Visualize John Kerry & Theresa Heinz Kerry doing the happy dance......UGH.

GetZeeGold's picture



Visualize John asking Theresa for his weekly allowance.....should get a raise this week I'm thinking.

holdbuysell's picture

To put this deal in perspective, it would have taken Bernanke only ~10 days to 'earn' enough to buy HNZ, a company, having been founded in 1869, that thus took 144 years to create such value, and debatably overvalued to boot at the acquisition price.

10 days...144 years. That says it all.

Doode's picture

Call me a conspiracy nut (more like a corruption nut), but Buffett made 10+ billion from firms bailed out by the US gov, then became an advocate of Obama's policies in a huge way (best buddies) - in return Buffett’s holdings in WaPo and its bastard step child Kaplan were spared from humiliation and fines for using subprime lending like style of recruiting poor students and using government's money to fund their otherwise worthless education. Moody's, another Buffett's holding, is also largely left out of the eye of the press even though no manager can use 1 credit rating - there has to be at least 2 (S&P, Moody's and Fitch). Now Kerry is getting a nice handout/cash out. These "bribes" would actually explain that Buffett too did not honestly make his money (maybe a long time ago when he was small and growing, but not lately). He made a ton off of the government and now is making payoffs to keep Dems silent about it.



Shizzmoney's picture

He made a ton off of the government and now is making payoffs to keep Dems silent about it.

And Republicans as well (especially those who own BAC stock). 

Basically, any of these Congressional assholes who own stock benefit from these "stock corruption" payoffs.  It's basically a way to pay off politicians without actually having to hand them the money through a regular donation or SuperPac.

It's a put on.

HomeBrewPrepper's picture

You forget to mention Obama voting against the pipeline because warren runs all the oil now on his railroads... Convenient eh,

Chippewa Partners's picture

Warren said the "gun is always getting reloaded".......Becky would you please weigh in on his comment?

ZeroAvatar's picture

She can't....she's busy purchasing calls on the stock in advance of the announcement.

Sandmann's picture

So Warren doesn't like Kraft and prefers Heinz. Interesting portfolio allocation. Still Heinz is as moribund as Kraft

docj's picture

Funny, isn't it, how well-to-do liberals who whine and rend their garments over "the rich getting richer"... are themselves the ones "getting richer".

Ironic, too.

Sach Mahoney's picture

Kerry, a millionaire and billionaire runs a very strong personal balance sheet with significantly more assets than liabilities.  Shame the moron can't run Gov't like that.  He wants to put all of us in hock, while he lives high on the hog.  The hypocracy of these dbags is stunning

ejmoosa's picture

Yet another reason to boycott Heinz Products.  

Alpha Monkey's picture

It made me sad recently learning my favorite jewelry crafting supply outlet, Rio Grande, is now a Berkshire Hathaway Company :( Now I have to find other sources.


Sudden Debt's picture