A huge merger between the globally recognised food and beverage brands Heinz and Kraft Food will create the 3rd largest food and beverage company in North America and the 5th largest food and beverage company in the world.
The company, to be named The Kraft Heinz Company, are to be co-headquartered in Pittsburgh and the Chicago area. It is expected the new company will have revenues of approximately $28 billion with eight brands with revenues over $1 billion.
The merger will see Kraft shareholders owning a 49% stake in the combined company, whilst current Heinz shareholder will own 51% on a full diluted basis.
The combination of these iconic food companies joins together two portfolios of beloved brands, including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. The complementary nature of the two brand portfolios presents substantial opportunity for synergies, which will result in increased investments in marketing and innovation.
When the transaction closes, Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, will become the Chairman of The Kraft Heinz Company. John Cahill, Kraft Chairman and Chief Executive Officer, will become Vice Chairman and chair of a newly formed operations and strategy committee of the Board of Directors.
Bernardo Hees, Chief Executive Officer of Heinz, will be appointed Chief Executive Officer of The Kraft Heinz Company. The new executive team for the combined global company will be announced during the transition period, but no later than transaction closing.