H.J. Heinz Co., Kraft Foods Group sign definitive merger agreement
H.J. Heinz Co., Pittsburgh, and Kraft Foods Group Inc., Northfield, IL, today announced they have entered into a definitive merger agreement to create The Kraft Heinz Co., forming the third-largest food and beverage company in North America with an unparalleled portfolio of iconic brands.
Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft’s boards of directors, Kraft shareholders will own a 49 percent stake in the combined company; current Heinz shareholders will own 51 percent on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10 billion is being fully funded by an equity contribution by Berkshire Hathaway and 3G Capital.