Heinz combines with Kraft creating one of the largest food companies in the US
Heinz has announced that it will merge with Kraft Foods Group to create the US’s third largest food manufacturing company.
Heinz owner, 3G Capital, worked with billionaire investor Warren Buffett's Berkshire Hathaway to form the new entity, which will be known as the Kraft Heinz Company.
The company, which will be the fifth largest food and drinks firm in the world, will be headquartered in in Pittsburgh and the Chicago area.
Alex Behring, chairman of Heinz and the managing partner at 3G Capital, said: "By bringing together these two iconic companies through this transaction, we are creating a strong platform for both US and international growth.
“Our combined brands and businesses mean increased scale and relevance both in the US and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies."
Warren Buffett, chairman and chief executive of Berkshire Hathaway, added: “I am delighted to play a part in bringing these two winning companies and their iconic brands together.
“This is my kind of transaction, uniting two world-class organisations and delivering shareholder value. I'm excited by the opportunities for what this new combined organisation will achieve."
Heinz shareholders will take up a 51 per cent stake in the new company - Kraft shareholders on the other hand will receive a 49 per cent share.
Combined, the companies have approximate revenues of $28bn with eight brands worth over $1bn and five between $500m and $1bn.