Warren Buffett Acquires Heinz

Berkshire and Hathaway and 3G Capital are buying out H.J. Heinz Company for $28 billion.

“Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products," said Warren Buffett, chairman and CEO of Berkshire Hathaway.

"As a Heinz employee and as a resident of Upper St. Clair, I am very proud of Heinz and our historic announcement today," said Michael Mullen, senior vice president of corporate and government affairs. "We believe this historic agreement will provide tremendous value to Heinz shareholders."

"As a private enterprise, Heinz will have an opportunity to drive further growth and advance our commitment to providing consumers across the globe with great tasting, nutritious and wholesome products," said William R. Johnson, Heinz chairman, president and CEO. 

Under the terms of the agreement, Heinz shareholders will receive $72.50 in cash for each share of common stock they own. 

The transaction is subject to approval by Heinz shareholders, receipt of regulatory approvals and other customary closing conditions, and is expected to close in the third quarter of 2013.

Berkshire Hathaway and 3G Capital have pledged to maintain Pittsburgh as its global headquarters.

"It is business as usual at Heinz, with a focus on serving the customers and consumers who enjoy our great brands," Mullen said.

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