Back in March of this year, H.J. Heinz Company and Kraft Foods Group signed an Agreement to form the Kraft Heinz Company. The agreement creates a monstrously huge company that will be the 3rd largest Food and Beverage company in North America and the 5th largest Food and Beverage Company in the world.
H.J. Heinz Company, is worldwide marketer of nourishing and affordable food products. Wherever, you go HJ is sure to follow, whether you’re at work, home, on the road again. If you’re not yet aware, Heinz products include: Ketchup, sauces, soups, beans and infant foods.
Kraft Foods Group, Inc. is one of the world’s largest consumer product companies. The annual revenue is in excess of $18 billion. Their recognizable brands include: Kraft, Capri Sun, Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Planters and my all-time favorite, Velveeta. They employ 22,000 employees here in North America.
Kraft Heinz revenues are projected to be: $28 billion with eight $1+ billion brands and five brands between $500 million-$1 billion.
Both parties have unanimously agreed that:
- Kraft share owners will own a 49% share of the total business. Heinz Shareholders will own 51% on a fully diluted basis.
- The proposed merger creates significant value for those owning Kraft shares.
- Two mega-investors, Berkshire Hathaway and 3G Capital have invested $10 billion in the corporate venture
Alex Behring, currently the Chairman of Heinz and the Managing Partner of 3G Capital, will be installed as the Chairman of the Kraft Heinz Company. (KHC). Kraft Chairman and Chief Executive Officer. John Cahill will be installed as Vice Chairman and chairperson of the operations and strategy committee of the Board of Directors. Bernardo Hees, formerly CEO of Heinz, will be assume the position of Chief Executive Officer of the new company.
The new company will continue to maintain their corporate offices in both Pittsburgh and Chicago and its environs. The company will continue to support and build upon their relationships in these communities. The new company brings together brands that have always well received and enjoyed by consumers. The merger connects eight 1+ billion dollar brands 5 other brands that gross between $500 Million and $1 billion dollars.
After lots of good stuff, a merger of two of two of leading brand names in the world of business, just two days ago on 11/6 announced that they are intending to lay off 2,600 workers (approximately, 10% the company’s workforce), closing facilities, including plants in: CA, MD, NY, PA, WI, and Ontario, Canada. The company will be upgrading their facilities in Davenport, IA and Champaign,IL.