Berkshire Hathaway Partners for $23B Heinz Purchase
by Christopher Freeburn | February 14, 2013 12:36 pm
[1]Ketchup-maker Heinz (NYSE:HNZ[2]) will be acquired for more than $23 billion[3] by 3G Capital and Berkshire Hathaway (NYSE:BRK.A[4], BRK.B[5]
), Warren Buffett’s famed investment firm.
Not surprisingly, shares of Heinz soared almost 20% in Thursday midday trading.
Under the terms of the deal, Heinz shareholders will be paid $72.50 a share. Including debt, the deal has a total value of about $28 billion. It marks the largest acquisition by Berkshire Hathaway since its 2009 purchase of Burlington Northern Santa Fe railroad for $25 billion, The Wall Street Journal noted.
Berkshire Hathaway rarely partners with other players in its acquisitions. However, in media interviews, Buffett said 3G Capital — which took Burger King (NYSE:BKW[6]) private for $4 billion in 2010 (it’s now public again) — would run Heinz under their deal. Berkshire Hathaway provided between $12 billion and $13 billion in cash to finance the purchase.
In his annual letter last year, Buffett indicated his intention to make more acquisitions[7].
Heinz’s board of directors has unanimously approved the deal, which is expected to be finalized in the third quarter of this year, if regulators give the final OK.
- [Image]: https://investorplace.com/wp-content/uploads/2012/10/heinz-ketchup-sign-building-630.jpg
- HNZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HNZ
- will be acquired for more than $23 billion: http://online.wsj.com/article/SB10001424127887323478004578303733925078030.html
- BRK.A: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.A
- BRK.B: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.B
- BKW: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKW
- make more acquisitions: https://investorplace.com/2012/08/buffett-still-cant-find-a-big-buyout-bargain/
Source URL: https://investorplace.com/2013/02/berkshire-hathaway-partners-for-23b-heinz-purchase/