Buffett and Co. to Buy Heinz

In largest deal in food industry history
By Kevin Spak,  Newser Staff
Posted Feb 14, 2013 8:57 AM CST
In this March 2, 2011 file photo, Heinz ketchup is seen on the shelf of a market in Barre, Vt.   (Toby Talbot)

(Newser) – An investment group including Warren Buffett has agreed to buy HJ Heinz Co., in what the company says will be the largest deal in food industry history. Shareholders will get $72.50 in cash for each common share, a 20% premium on yesterday's closing price, meaning the deal values the company at about $23.3 billion, the AP reports. "It's our kind of company," Buffett said in an interview on CNBC. Of its century-old ketchup he said, "I've sampled it many times."

Berkshire Hathaway is buying Heinz in conjunction with 3G Capital, the same invesment firm that bought Burger King in 2010. Heinz, which also produces Classico spaghetti sauces, Ore-Ida potatoes, and Smart Ones frozen meals, will remain headquartered in Pittsburgh.

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