- Juan Mari Arzak born (1942)
Heinz Sold for $23 Billion
Recipe of the day
When you think of Heinz, you probably think of the ketchup bottle (sometimes painted red, sometimes honest, clear plastic) sitting on the shelf in your fridge. What you’re probably not thinking about is $23 billion dollars.
On Thursday, Warren Buffet, chief executive of Berkshire Hathaway, and Jorge Paulo Lemann, financier for Brazil’s 3G Capital, made a $23 billion dollar deal to buy the 144 year-old condiment empire. Berkshire and 3G will split the $23 billion fee evenly but will assume different roles in the takeover. Meyer Shields, a Stifel, Nicolaus & Co analyst, told the Wall Street Journal, "Berkshire is funding 3G's acquisition rather than taking control.”
Heinz has been proving its stability in the market lately with its stock rising 17 percent over the last 12 months and Buffett and Lemann look forward to helping the company grow. They both believe that “Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products” and are excited about the new partnership, according to a release.
The deal will be funded with cash provided by both companies along with some financing by J.P Morgan and Wells Fargo. Berkshire and 3G will also respect Heinz’ wishes and leave the headquarters where they were originally stationed in Pittsburgh.
Skyler Bouchard is a junior writer for the Daily Meal. Follow her on twitter at @skylerbouchard.
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