Kraft Heinz Co. would be third largest food and beverage company in North America
Pittsburgh-based H.J. Heinz Co. and Northfield, Ill.-based Kraft Foods Group Inc. announced that they have signed a definitive merger agreement to form The Kraft Heinz Co., which would make the new company the third-largest food and beverage company in North America and the fifth largest in the world, the companies report. The new combined corporation will be co-headquartered in Pittsburgh and in the Chicago area, they say.
The combined operations are expected to generate annual revenues of about $28 billion, with eight brands exceeding annual incomes of $1 billion and five brands earning between $500 million and $1 billion, the companies say. Kraft shareholders are expected to receive a special cash dividend of $16.50 for each share owned upon closing and stock in the new entity, representing a 49 percent stake. Berkshire Hathaway and 3G Capital have pledged to invest $10 billion in The Kraft Heinz Co., with existing Heinz shareholders collectively owing 51 percent of the new company.