In Thursday’s press release, H.J. Heinz Company reports that they expect to be fully transitioned to a private company by the third quarter of 2013. Heinz has been acquired by Berkshire Hathaway and 3G Capitals. While this decision was unanimously approved by the Board of Directors, shareholders and regulatory agencies must approve the deal before the transition to a private company can be official. Shareholders are expected to be paid 72.50 for each share of stock, and the transaction is valued at $28 billion.
Customers and employees can expect no change to the brand, people and product. 3G Capital and Berkshire Hathaway have not reported any plans to relocate and plan to continue community initiatives for the current offices, factories and warehouses. Heinz is expected to remain headquartered in Pittsburgh.
Berkshire Hathaway Inc.
Warren Buffett is the CEO of the holding company Berkshire Hathaway Inc. The company does not produce goods or services but owns shares of other companies. Currently Berkshire Hathaway owns 56 subsidiaries in a variety of industries. Clayton Homes, GEICO and Helzberg Diamonds are some of the subsidiaries that Berkshire Hathaway Inc. completely or partly owns. It is publically traded on the NYSE (NYSE:BRK.A). The company closed the trading day Friday with a stock price of 150,141. The business is headquartered in Omaha, NE.
3G Capital
3G Capital is a privately owned global investment firm that has been operating since 2004. Prior to the acquisition of H.J. Heinz, it acquired Burger King in 2010 and involved with Anheuser-Busch for 24 years. It has headquarters in New York and Rio de Janeiro.
Alex Behring, managing partner of 3G Capital stated, “I was very excited coming into Pittsburgh today and seeing Heinz stage and being reminded that this is a city of champions. I think this is a historic day for the food industry, this is a landmark transaction which I think will be a win for the Company, its employees, its customers, its shareholders and the investors in the long run as well.”
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