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Heinz sold for $28 billion

Feb. 14, 2013 at 3:46 PM

PITTSBURGH, Feb. 14 (UPI) -- U.S. food giant H.J. Heinz Co. said Thursday it agreed to sell itself to Berkshire Hathaway and 3G Capital for $28 billion.

Heinz shareholders will receive $72.50 per share of common stock -- considered a 20 percent premium -- in a deal that also includes the transition of Heinz's outstanding debt. On Wednesday, the value of Heinz shares closed the day at $60.48.

After 30 consecutive quarters of "organic, topline growth Heinz is being acquired from a position of strength," Heinz Chairman, President and Chief Executive Officer William Johnson said.

"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," Johnson said in a statement.

Warren Buffett, chairman and CEO of Berkshire Hathaway, praised Heinz as a company with "strong, sustainable investment growth potential based on high quality standards, continuous innovation, excellent management and great tasting products."

Berkshire Hathaway and 3G Capital said Heinz would keep its company headquarters in Pittsburgh.

The deal is subject to regulatory approval and must be approved by Heinz shareholders, as well.

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