Souper-sized Food Company To Be Formed

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US food company, Heinz, is poised to merge with its compatriot Kraft Foods in a deal worth around $100bn (£68bn).

Brazilian private equity company 3G has joined up with renowned investor Warren Buffett to buy Kraft Foods for around $40bn, before bringing it together with HJ Heinz, which was previously  acquired by the same investment team around two years ago.  The deal means that lunch-time favourites such as Heinz Tomato Soup and Philadelphia cheese will be unified under the new Kraft Heinz Company.  Analysts expect the new entity to generate yearly sales of around $28bn.

Shares in the new company will be split at a rate of 51%/49% between current Heinz and Kraft shareholders, respectively.  Kraft shareholders are expected to receive a share of a $10bn cash pay-out as a result of the deal.

Forbes Solicitors regularly act for clients in the sale and purchase of businesses.  If you require further assistance in relation to corporate restructuring please do not hesitate to contact us via our contact form or on 0800 321 3258.

Pauline Rigby

About Pauline Rigby

Pauline Rigby is Head of the Corporate and Restructuring team at Forbes Solicitors. Pauline’s blogs cover a wide range of corporate issues, specifically areas including company formation, banking, joint ventures and shareholder matters, contractual matters and equity fundraising or investing.
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