The Kraft Heinz Company is an American worldwide food company formed by the merger of Kraft Foods and Heinz.[2] The merger is backed by 3G Capital and Berkshire Hathaway, which will together invest US$10 billion in the deal, making Kraft Heinz worth about US$46 billion.[3][4] The Kraft Heinz Company now has 13 different brands valued at $500 million or more each.[5]
Contents [hide]
1 Merger
2 See also
3 References
4 Further reading
5 External links
Merger[edit]
The merger has been agreed by the boards of both companies, with approvals by shareholders and regulatory authorities.[2][5] The new company is expected to become the world's fifth-largest food and beverage company[6] and the third-largest in the US.[2] The company will have dual headquarters in Pittsburgh and Chicago, the respective headquarters of Heinz and Kraft.[7] The companies completed the merger on July 2, 2015.[1]
Under the merger, Kraft's shareholders received 49% of shares in the combined company, plus a one-time dividend of US$16.50 per share.[8] Fortune reports that sluggish growth for Kraft in the US market is due to consumers turning to natural and organic ingredients.[9]
Alex Behring, 3G Capital's managing partner, becomes the chairman of the new company; Bernardo Hees, Heinz's chief executive officer (CEO), is now the CEO of the new company; and John Cahill, Kraft's CEO, is now the vice chairman of the new company.[9]
The merger will not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[7]