Take your Kraft Dinner and slap some ketchup on it. Add some cheese-type food to your tin of baked beans. The home eater has long had free reign to do whatever they want with their food, and now it looks like companies are following suit. Heinz is buying up Kraft, merging two food giants into one gianter food giant. It’s less about growth and more about shaving $1.5 billion dollars off the bottom line of the new combined company by consolidating distribution and manufacturing facilities. The merger still faces approval from the federal government and Kraft shareholders; Heinz, and the new company, will be privately held.
Heinz CEO Bernardo Hees would be the CEO of the new combined company. The total holding of Heinz Kraft will be 51 percent Heinz and 49 percent Kraft, with Kraft holders getting $16.50 per share of stock plus each Kraft share will be converted into one share of Kraft Heinz. Meanwhile, Berkshire Hathaway and 3G will own pretty much all the food, and perhaps the new combined company will usher in some revolutionary packaging changes and maybe some hot new food items.
Mac And Cheese and Ketchup, anyone?
Tags: mergers, corporate mergers, kraft, kraft foods, heinz, hj heinz, heinz to buy kraft foods, heinz buys krafts, food, convenient food, bernardo hees, heinz kraft, heinz to buy and merge with kraft, berkshire hathaway, 3g