Berkshire Hathaway To Acquire H.J. Heinz For $28 Billion

PITTSBURGH, OMAHA, Neb. and NEW YORKH.J. Heinz Co. has entered into a definitive merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital. The record-breaking transaction, valued at $28 billion, is the largest ever in the food industry.

Under the terms of the agreement, which has been unanimously approved by Heinzs Board of Directors, Heinz shareholders will receive $72.50 in cash for each share of common stock they own, in a transaction valued at $28 billion, including the assumption of Heinzs outstanding debt.

To preserve Heinzs values, heritage and community connections, Berkshire Hathaway and 3G Capital have pledged to maintain Pittsburgh as its global headquarters of the private company, and to fulfill and continue its philanthropic support of community initiatives and related investments.

The Heinz brand is one of the most respected brands in the global food industry, and this historic transaction provides tremendous value to Heinz shareholders," said Heinz Chairman, President and CEO William R. Johnson. We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz. With Heinz stock recently at an all-time high and 30 consecutive quarters of organic topline growth, Heinz is being acquired from a position of strength. As a private enterprise, Heinz will have an opportunity to drive further growth and advance our commitment to providing consumers across the globe with great tasting, nutritious and wholesome products," added Johnson.

Commenting on the deal, Warren Buffett, Chairman and CEO of Berkshire Hathaway, said: Heinz has strong, sustainable growth potential based on high-quality standards, continuous innovation, excellent management and great tasting products. Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes. We are very pleased to be a part of this partnership."

Alex Behring, Managing Partner at 3G Capital said, We have great respect for the Heinz brands and the strong business that management and its employees operate around the world. We approached Heinz to explore how we might work together to expand the value of this storied brand. We fully recognize Heinzs value and heritage and look forward to working together with Heinzs employees, suppliers and customers as we invest in and support the companys ongoing global growth efforts."

The transaction is subject to approval by Heinz shareholders, receipt of regulatory approvals and other customary closing conditions, and is expected to close in the third-quarter 2013.