Milling & Baking News Corporate Profiles - November 2013 - (Page 100)

Company Overview The H.J. Heinz Co. Acquisition turns the company private A ketchup maker un-bottled plans in 2013 to move from being a publicly-traded company to being a private company. On Feb. 14, the H.J. Heinz Co., Pittsburgh, announced it had agreed to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital in a transaction valued at $28 billion, including the assumption of Heinz's outstanding debt. Heinz shareholders received $72.50 in cash for each share of common stock. The price per share represented a 20% premium to Heinz's closing share price of $60.48 on Feb. 13. "With Heinz stock recently at an alltime high and 30 consecutive quarters of organic top-line growth, Heinz is being acquired from a position of strength," said William R. Johnson, the retiring chairman, president and chief executive officer. "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." The transaction was to be financed through a combination of cash provided by Berkshire Hathaway and affiliates of 3G Capital, rollover of existing debt, as well as debt financing committed by J.P. Morgan and Wells Fargo. H.J. Heinz drew praise from James E. Neely, vice-president of Booz & Company, Inc., Cleveland. He said the company several years ago began shedding many of its businesses to focus on its top four brands of Heinz, Weight Watchers, Ore-Ida and Smart Ones. "Heinz itself is a great story," Mr. Neely said. "They have successfully gotten their portfolio aligned around certain capabilities." The acquisition of H.J. Heinz closed on June 7 with Bernardo Hees becoming chief executive officer. Mr. Johnson retired after a 31-year career with the company, including the last 15 plus as c.e.o. On June 7, Heinz announced a new leadership team. Paulo Basilio, a partner at 3G Capital, was appointed chief financial officer. Kristen Clark, who most recently was president of Heinz Canada, was appointed senior vicepresident and chief people officer. Brendan Foley, most recently president of U.S. Consumer Products, was named zone president of Heinz North America. Chief executive officer - "I am thrilled that this world-class group of executives will join me in taking Heinz to new heights while elevating our iconic global brands, offering superior customer service and ensuring that we continue to work collaboratively and efficiently across our global businesses," Mr. Hees said. The common stock of Heinz no longer was listed for trading on the New York Stock Exchange. H.J. Heinz gave financial results for the fiscal year ended April 28 in a July 9 filing with the Securities and Exchange Commission. Income rose to $1,088 million from $974 million in the previous year while sales rose to $11,529 million from $11,508 million. The company incurred $45 million pretax ($28 million after-tax) of transaction-related costs. In August the company said it would develop a new streamlined structure for North America and planned to eliminate 600 office positions in the transition to a private company. The company planned to remain in Pittsburgh, as it has been for 144 years, and continue to employ 800 people in the Pittsburgh region. CP Top brands - Heinz Weight Watchers Ore-Ida Smart Ones 2012 global sales - Bernardo Hees 100 \ November 2013 $11.5 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013