Kraft Foods Group, which makes Oscar Mayer meats and macaroni-and-cheese products, will merge with ketchupmaker H.J. Heinz Co. to become the fifth largest food-and-beverage company in the world and the third largest in the U.S.
The new company, the Kraft Heinz Co., will be co-headquartered in the Chicago and Pittsburgh areas and will have revenues of roughly $28 billion, the companies announced in a statement Wednesday. Eight of its combined brands will be worth more than $1 billion each, while five will be worth approximately $500 million to $1 billion each.
Berkshire Hathaway Inc. and Brazilian private-equity firm 3G Capital, which co-own Heinz, will invest an additional $10 billion into the merged company, of which current Heinz and Kraft shareholders will collectively own 51% and 49% respectively. Kraft shareholders will also receive special cash dividends of $16.50 per share.
“This is my kind of transaction, uniting two world-class organizations and delivering shareholder value,” Berkshire Hathaway chairman and CEO Warren Buffett said in a statement. “I’m excited by the opportunities for what this new combined organization will achieve.”
- AI Is Not an Arms Race
- The 30 Most Anticipated Movies of Summer 2023
- Here's What's in the Debt Ceiling Deal
- India’s Female Wrestlers Are Saying #MeToo
- The End of Succession
- What Erdoğan’s Victory Means for Turkey—and the World
- Why Everyone Is Having Bad Sex (Especially Young People)
- Florence Pugh Might Just Save the Movie Star From Extinction
