Kraft and Heinz form the third-largest food company in the … – Onet.pl

Kraft shares jumped nearly 26 percent in trading after the announcement of the transaction przedsesyjnym. Thanks to Heinz return to the stock exchange, which was withdrawn after the acquisition of it two years ago.

The combined company we manage is president of Heinz, Bernardo Hees, will be reached revenues of $ 28 billion, the two companies reported in Wednesday’s press release. Kraft has been struggling with weak demand for pre-packaged foods in the United States.

The combined company is expected to save the end of 2017 year, nearly $ 1.5 billion a year, according to a statement. Kraft shareholders will have a 49 percent stake in the combined company, while shareholders Heinz 51 percent. Kraft shareholders will receive one share in the combined company, which is to be called Kraft Heinz Co, and a special cash dividend in the amount of 16.50 a dollar for each share held.

At Tuesday’s closing market value of Kraft was approximately $ 36 billion, based on shares outstanding in the free market on the second of March. Brazilian private-equity fund, 3G Capital and belongs to Warren Buffett’s Berkshire Hathaway Heinz took over in 2013 for 23.2 billion dollars.

Kraft is the fifth major transaction 3G Capital in the food industry since 2008, when the company organized the takeover of Anheuser-Busch brewery IbBev.

3G Capital also has 51 percent in Restaurant Brands International Inc., created last year as a result of the acquisition by belonging to the Burger King Canada café chain Tim Hortons Inc.

Berkshire and 3G Capital will finance a special dividend in cash, worth a total of about $ 10 billion.

The combined company will have eight brands, each of which will be worth over a billion dollars, and five between 500 million and one billion, the company reported.

Alex Behring, Heinz chairman and managing partner of 3G Capital, will be chairman of the supervisory board of the combined company. Vice-President is the President of Kraft, John Cahill.

The transaction is expected to close in the second half of 2015. On Tuesday, about the talks between the companies reported The Wall Street Journal.

Heinz was the financial advisor to Lazard bank, and suit for legal services firms Cravath, Swaine & amp; Moore and Kirkland and Ellis. Kraftowi from the financial advisor Centerview Partners LLC and the law firm of Sullivan & amp; Cromwell.

Shares of Kraft before opening valued at $ 77.