NEW YORK (AP) -- H.J. Heinz Co. says it agreed to be acquired by an investment consortium including billionaire investor Warren Buffett in a deal valued at $28 billion.
The ketchup company says Heinz shareholders will receive $72.50 in cash for each share of common stock they own. The deal value includes the assumption of Heinz's debt. Based on Heinz's number of shares outstanding, the deal is worth $23.3 billion excluding debt.
"It's our kind of company," Buffett said in an interview on CNBC, noting its signature ketchup has been around for more than a century. "I've sampled it many times."
In addition to its ketchup, Heinz makes Classico spaghetti sauces, Ore-Ida potatoes and Smart Ones frozen meals. Berkshire Hathaway and 3G Capital, the investment firm which also bought Burger King in 2010, say Heinz will remain headquartered in Pittsburgh.
Given the saturated North American market, Heinz has increasingly looked to emerging markets for growth. In its last quarter, the company said emerging markets made up 23 percent of sales.
The per-share price for the deal represents a 20 percent premium to Heinz's closing price of $60.48 on Wednesday. Buffett said Berkshire will still have room to make more acquisitions, noting that the firm's businesses continually replenish its cash supply.
"Anytime we see a deal is attractive and it's our kind of business and we've got the money, I'm ready to go," Buffet said.
New York state and Eastman Kodak Co. have reached a deal that will keep some of the troubled company's operations in Rochester and provide $49 million for environmental cleanup at the once bustling Eastman...
New York state and Eastman Kodak Co. have reached a deal that will keep some of the troubled company's operations in Rochester and provide $49 million for environmental cleanup at the once bustling Eastman Business Park.
Wednesday, June 19 2013 1:16 PM EDT2013-06-19 17:16:13 GMT
Kolcraft is recalling more than 96,000 Jeep Liberty strollers after at least 18 people were injured by tire blowouts, the Consumer Product Safety Commission said Wednesday.
Kolcraft is recalling more than 96,000 Jeep Liberty strollers after at least 18 people were injured by tire blowouts, the Consumer Product Safety Commission said Wednesday.
Wednesday, June 19 2013 8:30 AM EDT2013-06-19 12:30:41 GMT
Natura Pet Products is voluntarily recalling all Innova, California Natural, EVO, Healthwise, Mother Nature and Karma branded dry pet food and biscuit, bar, and treat products with expiration dates prior to June 10, 2014, because of a positive Salmonella test.
Natura Pet Products is voluntarily recalling all Innova, California Natural, EVO, Healthwise, Mother Nature and Karma branded dry pet food and biscuit, bar, and treat products with expiration dates prior to June 10, 2014, because of a positive Salmonella test.
Wednesday, June 19 2013 6:12 AM EDT2013-06-19 10:12:52 GMT
A senior administration official says Gov. Andrew Cuomo and legislative leaders have struck a deal to authorize four upstate casinos and to allow votes on 10 separate women's rights bills including an abortion...
A senior administration official says Gov. Andrew Cuomo and legislative leaders have struck a deal to authorize four upstate casinos and to allow votes on 10 separate women's rights bills including an abortion proposal...
Tuesday, June 18 2013 11:03 PM EDT2013-06-19 03:03:58 GMT
Facebook, which owns Instagram, is expected to announce this week a new video option for the popular photo app. Most likely the feature will be for shortened video clips.
Facebook, which owns Instagram, is expected to announce this week a new video option for the popular photo app. Most likely the feature will be for shortened video clips kind of what you see on Vine.
Tuesday, June 18 2013 2:57 PM EDT2013-06-18 18:57:05 GMT
Chrysler photo via AP
Chrysler said it has resolved its differences with the government and will recall older Jeep Grand Cherokee and Liberty SUVs that could be at risk of a fuel tank fire.
Chrysler said it has resolved its differences with the government and will recall older Jeep Grand Cherokee and Liberty SUVs that could be at risk of a fuel tank fire.
Tuesday, June 18 2013 12:20 PM EDT2013-06-18 16:20:04 GMT
The director of the National Security Agency said Tuesday the government's sweeping surveillance programs have foiled some 50 terrorist plots worldwide, including one directed at the New York Stock Exchange.
The director of the National Security Agency said Tuesday the government's sweeping surveillance programs have foiled some 50 terrorist plots worldwide, including one directed at the New York Stock Exchange.
Monday, June 17 2013 10:10 AM EDT2013-06-17 14:10:37 GMT
For the first time in seven years, most U.S. homebuilders are optimistic about home sales, a sign that construction could help drive stronger economic growth in coming months.
For the first time in seven years, most U.S. homebuilders are optimistic about home sales, a sign that construction could help drive stronger economic growth in coming months.
