Berkshire and 3G to Acquire Heinz
14 Feb, 2013
BREAKING- Warren Buffett is teaming up with Brazilian investment firm, 3G Capital, to make a monster acquisition.
Mr. Buffett believes this deal will be a great addition to his extensive portfolio of prominent brands. On the other hand, 3G seems to be making a strategic acquisition. The Brazilian firm is a majority stakeholder in Burger King, and acquiring Heinz is a smart choice.
The deal will see Heinz being bought at $72.5 a share, or a 20 percent premium above Wednesday’s closing price.
The deal will be financed with $4B in cash from both parties, with an additional $8B from Berkshire with preferred shares. The rest will be through debt underwritten by J.P Morgan and Wells Fargo.
3G will reportedly be the main supervisor of Heinz’s operations, as Buffett was quoted saying, ” this is 3G’s baby.”
Heinz is up 20 percent at $72.51 on Thursday morning trading.