Kraft Heinz

The Kraft Heinz Company
Public
Traded as NASDAQ: KHC
Industry Food processing
Predecessors Heinz
Kraft Foods
Founded 2 July 2015 (2015-07-02)[1]
Headquarters Northfield, Illinois
Pittsburgh, Pennsylvania, United States
Area served
 Worldwide
Key people
 Alex Behring (Chairman)
John Cahill (Vice chairman)
Bernardo Hees (CEO)
Owner Berkshire Hathaway (26%)
3G Capital (51%)
Divisions Kraft
Heinz
Website kraftheinzcompany.com

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]

Merger

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]

See also

References

  1. 1 2 "The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation" (PDF). The Kraft Heinz Company. 2 July 2015. Archived from the original (PDF) on 14 July 2015. Retrieved 23 January 2015.
  2. 1 2 3 "Kraft Foods to merge with Heinz". BBC News. 25 March 2015.
  3. ↑ "Kraft Foods to merge with ketchup maker Heinz". Reuters. March 25, 2015. Retrieved March 25, 2015.
  4. ↑ "3G Capital, Berkshire to Buy Kraft Foods, Merge It With Heinz". Bloomberg. March 25, 2015. Retrieved March 25, 2015.
  5. 1 2 "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. Retrieved 28 March 2015.
  6. ↑ Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World’s 5th-Largest Food Company". TIME magazine.
  7. 1 2 Teresa F. Lindeman (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette.
  8. ↑ Giammona, Craig. "Kraft Foods, Heinz to merge in deal backed by Warren Buffett, Tim Hortons owner". Financial Post. Postmedia Network. Retrieved 27 March 2015.
  9. 1 2 "1. Meet the new Kraft Heinz Company.". Fortune. 25 March 2015.

Further reading

External links

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