PITTSBURGH — Northfield, Ill.-based Kraft Foods Group Inc. and Pittsburgh-based H.J. Heinz Company will be merged to create a new entity, thanks to a deal between 3G Capital and Warren Buffett’s Berkshire Hathaway Inc in Omaha, N.E.
The Kraft Heinz Company will represent brands such as Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia, with combined revenues of approximately $28 billion. “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both U.S. and international growth. Our combined brands and businesses mean increased scale and relevance both in the U.S. and internationally. We have the utmost respect for the Kraft business and its employees and greatly look forward to working together as we integrate the two companies,” said Alex Behring, chairman of Heinz and managing partner at 3G Capital.
Nearly $10 billion will be invested by Berkshire Hathaway and 3G Capital into the new company. Kraft shareholders will own a 49-per-cent stake, and current Heinz shareholders will own 51 per cent.
3G Capital has been busy spearheading new deals that combine global brands, including purchasing H.J. Heinz Company for $28 billion in conjunction with Berkshire Hathaway in 2013 and merging Tim Hortons with Burger King late last year.
