The deal was completed by Heinz’s owners, Brazilian investment firm 3G Capital and investor Warren Buffett’s Berkshire Hathaway.
Current Heinz shareholders will own 51% of the combined company with Kraft shareholders owning a 49% stake. Berkshire Hathaway and 3G Capital will invest an additional $10 billion in the new company.
The combined company is to be named The Kraft Heinz Company and will be headquartered in the US. The new company will have revenues of approximately $28 billion with eight $1+ billion brands and five brands between $500 million and $1 billion.
Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, said, “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both U.S. and international growth. Our combined brands and businesses mean increased scale and relevance both in the U.S. and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies.”
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.”
The transaction is subject to approval by Kraft shareholders, receipt of regulatory approvals and other customary closing conditions and is expected to close in the second half of 2015.