Warren Buffett’s Berkshire Hathaway Inc and 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G’s ambitions in the food industry with Buffett’s hunt for growth. Including debt assumption, Heinz valued the transaction, which it called the largest in its industry’s history, at $28 billion. Berkshire and 3G will pay $72.50 per share, a 19 percent premium to the stock’s all-time high. For Buffett, the deal represents an unusual teaming with private equity for a major acquisition because historically, his purchases have been outright his own. He told CNBC that 3G approached him with the idea in December and that it was “my kind of deal.” He has been on the hunt for a major purchase worth in the neighborhood of $20 billion or more. Buffett said Thursday that Berkshire’s piece of the Heinz purchase was $12 billion to $13 billion cash, for a mix of common and preferred equity. The last time Buffett did a deal like this was in 2008, when Berkshire helped fund Mars Inc’s $23 billion purchase of Wrigley. READ ON: Berkshire Hathaway, 3G Capital to buy Heinz
Pop-upView Separately

Warren Buffett’s Berkshire Hathaway Inc and 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G’s ambitions in the food industry with Buffett’s hunt for growth.

Including debt assumption, Heinz valued the transaction, which it called the largest in its industry’s history, at $28 billion. Berkshire and 3G will pay $72.50 per share, a 19 percent premium to the stock’s all-time high.

For Buffett, the deal represents an unusual teaming with private equity for a major acquisition because historically, his purchases have been outright his own. He told CNBC that 3G approached him with the idea in December and that it was “my kind of deal.”

He has been on the hunt for a major purchase worth in the neighborhood of $20 billion or more. Buffett said Thursday that Berkshire’s piece of the Heinz purchase was $12 billion to $13 billion cash, for a mix of common and preferred equity.

The last time Buffett did a deal like this was in 2008, when Berkshire helped fund Mars Inc’s $23 billion purchase of Wrigley.

READ ON: Berkshire Hathaway, 3G Capital to buy Heinz

51 Notes/ Hide

  1. jeredleo400 reblogged this from reuters and added:
    basketball
  2. fast-times-on-the-metro reblogged this from reuters
  3. graisinbrand reblogged this from reuters
  4. rebeltriping reblogged this from reuters
  5. casiejulia reblogged this from reuters
  6. thegirlwholivesinbooks reblogged this from reuters
  7. letopdutop1 reblogged this from reuters
  8. willmciver reblogged this from reuters and added:
    Name rings a bell?
  9. asapisjustmynickname reblogged this from reuters
  10. conceiteddaydreamer reblogged this from reuters
  11. rosetta-on-latte reblogged this from reuters
  12. wizardblue reblogged this from reuters
  13. occultagendas reblogged this from reuters
  14. maureenjohnsonismypatronus reblogged this from reuters
  15. newsfloozie reblogged this from reuters
  16. endorphinique reblogged this from reuters and added:
    HEY WARREN GUESS WHAT YOU KINDA JUST BOUGHT MY WHOLE CITY YOU’RE COOL, SO BE GOOD WITH IT, AIGHT?
  17. cvintica reblogged this from reuters
  18. girlmeetspavement reblogged this from reuters and added:
    This guy is probably the kindest and cutest old man out there..