Warren Buffett Acquires Heinz
New York, NY-
By ANUK Staff
The most closely watched investor in America, Warren Buffett, has turned to ketchup.Buffet agreed Thursday to buy H.J. Heinz Co. for $23.3 billion in the most expensive deal ever in the food industry.
The deal is intended to aid Heinz in expanding into the international marketplace. The Pittsburgh-based company also makes baked beans, pickles, vinegar, Classico pasta sauces and Ore-Ida potatoes, as well as a growing stable of sauces suited to regional tastes around the world, according to the Associated Press.
Bershire Hathaway, Buffett’s investment firm, is partnering with 3G Capital to acquire Heinz. 3G Capital is best known for its acquisition of Burger King and its role in the deal that created Anheuser-Busch InBev, the world's biggest beer maker.
The deal, expected to close in the third quarter, sent shares of Heinz soaring. The company's stock price was up nearly 20 percent, closing at $72.50 Thursday on the New York Stock Exchange.
Berkshire picked up steam, too. Its Class A shares gained $1,490, or about 1 percent, to close at $149,240.