Kraft, H.J. Heinz Merge to Create The Kraft Heinz Co.
H.J. Heinz Co., Pittsburgh, Pa., and Kraft Foods Group, Inc., Northfield, Ill., entered into a definitive merger agreement to create The Kraft Heinz Co., what is said to be the third largest food and beverage company in North America.
Under the terms of the agreement, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% 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.