Warren Buffet and Berkshire Hathaway to feast on Baked Beans, Spaghetti Hoops and Tomato Ketchup

Warren Buffet’s Berkshire Hathaway has teamed up with 3G Capital and in the last couple of hours announced their intention to acquire HJ Heinz in a deal valued at USD 28bn. Under the terms of the proposed acquisition, Heinz shareholders would receive USD 72.50 in cash for each common share they own, representing a 20 per cent premium on Heinz’s closing share price of USD 60.48 on 13th February.

What’s so fascinating about this deal from a consumer perspective is that it brings some of the most well-known and popular food brands globally under the ownership of one of the most widely recognised and well-known financial investors, Warren Buffet and Berkshire Hathaway.

Heinz is synonymous with tomato ketchup and baked beans and also includes Lea & Perrins and Amoy Oriental food products. The company has ranges spanning pet food to baby food and caters to tastes across all geographical markets.

At USD 28bn the deal is the largest announced so far this year, but on the basis that the top 5 deals announced in 2013 (including the Heinz deal) currently account for over USD 115bn of total deal value for the year to date, could this be a further sign that deal-making confidence is finally returning?

Filed under: food, M&A, dealmaking