Kraft + Heinz are Getting Married
Kraft + Heinz are Getting Married and I think that the merger could result in very cute, very delicious and very rich offsprings!
Hmmm, maybe not so cute but rich indeed…
H.J. Heinz and Kraft Foods Group (KRFT) have announced they have agreed to merge in a mega-deal that will form the fifth largest food and beverage firm in the world and the third largest in North America.
Shares of Kraft soared 35% in pre-market trading on the news, yes I watch CNBC, surprised?
The firms said the deal to create The Kraft Heinz Co. was unanimously approved by the boards of directors of both companies and the new firm will be co-headquartered in Pittsburgh and in the Chicago area. The new company will have revenues of approximately $28 billion and will hold a portfolio of brands including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. The total deal could be valued at around…ready to do your best Dr. Evil impersonation…$36 billion!
“Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis,” the firms said in a statement. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share.
Wondering how to get in on the deal? OK, here’s my suggestion, you’re welcome! Get up, get dressed, go to the supermarket, buy one of the below products, and use them in a recipe to make dinner for your family. Easy right? Then and only then can you tell your friends and family that you were in on the biggest merger of the year at the very beginning AND, you cooked!
The $10 billion aggregate special dividend payment is being fully funded by an equity contribution by Warren Buffett’s Berkshire Hathaway (BRK.A) and 3G Capital. They acquired H.J. Heinz in 2013.
The deal, subject to approval by Kraft shareholders and regulatory approvals, is expected to close in the second half of 2015. By then, you could be well on your way to becoming a chef!
