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Berkshire Hathaway and 3G Capital have recently bought Heinz, a U.S food processing company famous for its ketchup, for $28bn with a glance at the company’s debt, which is 20% higher its market cost.
Experts say that this is the biggest deal in the food industry. For reference sake, Berkshire Hathaway is a major shareholder of such companies as Kraft Foods and Coca-Cola.
The company’s report says that the deal will result in every shareholder receiving $72.5 per share.
The board of directors of Heinz unanimously agreed to the conditions offered by Berkshire Hathaway and 3G Capital. The head of Berkshire Hathaway assumes that Heinz has growth potential as the quality of its products is very high, along with efficient management and constant innovation. Warren Buffet was considering to buy Heinz in the 1980s.
The deal was initiated by 3D Capital. Davis Polk & Wardwell and Bank of America Merrill Lynch acted as consultants.
The chart below, courtesy of , reflects the current state of affairs in the market of Heinz:
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