Kraft Heinz

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The Kraft Heinz Company
Public
Traded as NASDAQKHC
S&P 500 and NASDAQ-100 component
Industry Food processing
Predecessors Heinz
Kraft Foods
Founded July 2, 2015; 3 years ago (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
3G Capital
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. 1.0 1.1 "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. 2.0 2.1 2.2 "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. 5.0 5.1 "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. 7.0 7.1 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. 9.0 9.1 "1. Meet the new Kraft Heinz Company.". Fortune. 25 March 2015. 

Further reading

External links