Warren Buffett has been very publicly casting about for a big deal – and he's found one in the Heinz ketchup company.
Through his investment firm, Berkshire Hathaway, the famed investor is teaming up with a Brazilian private-equity firm to acquire H.J. Heinz. The $28-billion price tag, including the assumption of debt, is the biggest buyout in the history of the food industry.
Heinz shareholders will get $72.50 a share in cash, a 20% premium to the ketchup maker’s $60.48 closing price Wednesday.
“Heinz has strong, sustainable growth potential based on high-quality standards, continuous innovation, excellent management and great tasting products,” Buffett said in a statement.
Heinz will maintain its headquarters in Pittsburgh. Buffett’s partner in the deal, 3G Capital, made a name for itself by investing in Burger King.
Heinz shares were recently trading at $72.50, but went as high as $72.61 earlier this morning, suggesting some investors may be expecting a potential rival bid to emerge.
Buffett has vocally complained recently about a lack of investment opportunities and took the unusual step of buying back some of Berkshire’s stock with some of the company’s huge stockpile of cash.
Another Buffett deal: Warren Buffett invests in parties, buys Oriental Trading Co.
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