Heinz and Kraft Merge to Form World’s Fifth-Largest Food Company
Two of the largest food and beverage companies in the world, Heinz and Kraft, have merged today, creating a mega-company with revenues of $28 billion, and a possible total worth of more than $36 billion. Kraft Heinz will be the fifth-largest food and beverage company in the world, and the third-largest in North America.The morning of the deal, shares of Kraft soared 30 percent in the stock market. The brands now a part of this super-company include Lunchables, Velveeta, Oscar Mayer, Philadelphia, Kool Aid, Maxwell House, and more. According to a press release, eight of the brands are worth over $1 billion.
“Together, Heinz and Kraft will be able to achieve rapid expansion while delivering the quality, brands, and products that our consumers love,” said Bernardo Hees, Heinz chief executive officer. “Over the past two years, we have transformed Heinz into one of the most efficient and profitable food companies in the world while reinvesting behind our key brands and continuing our relentless commitment to quality and innovation.”
Kraft shareholders will hold a 49 percent stake in the combined company, and Heinz shareholders will own a 51 percent stake. A portion of the deal, a $10 billion aggregate, was funded by Warren Buffet and 3G Capital.