Warren Buffett has been very publicly casting about for a big deal – and he's found one in the Heinz ketchup company.
Through his investment firm, Berkshire Hathaway, the famed investor is teaming up with a Brazilian private-equity firm to acquire H.J. Heinz. The $28-billion price tag, including the assumption of debt, is the biggest buyout in the history of the food industry.
Heinz shareholders will get $72.50 a share in cash, a 20% premium to the ketchup maker’s $60.48 closing price Wednesday.
“Heinz has strong, sustainable growth potential based on high-quality standards, continuous innovation, excellent management and great tasting products,” Buffett said in a statement.
Heinz will maintain its headquarters in Pittsburgh. Buffett’s partner in the deal, 3G Capital, made a name for itself by investing in Burger King.