Entries in H.J. Heinz (3)


Berkshire Hathaway and 3G Capital to Purchase Heinz for $28 Billion

Edouard H.R. Gluck/Bloomberg via Getty Images(NEW YORK) -- Berkshire Hathaway and 3G Capital will acquire H.J. Heinz Company, the food giant best known for its 57 varieties of ketchup, in a transaction valued at a whopping $28 billion, according to a press release from Heinz.

Berkshire Hathaway, the conglomerate run by billionaire Warren Buffett, and 3G will each pay $4 billion in cash in the deal, with Berkshire contributing an additional $8 billion for preferred shares, according to the New York Times. Including the assumption of Heinz's debts, the deal is the fourth largest ever in the food and beverage industry.

In Heinz's statement, CEO William Johnson said, “We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz."

The agreement was unanimously approved by the Heinz Board of Directors, and is subject to shareholder approval. The merger is expected to close before the end of the third quarter of 2013. Berkshire and 3G have pledged to maintain Heinz's headquarters in Pittsburgh, the city that has been home to the condiment company for over 100 years.

According to the Times, Buffett told CNBC that "Heinz will be 3G's baby." Heinz, which owns the potato company Ore-Ida as well as Lea & Perrins Worcestershire sauce in addition to their best known condiment, is an intriguing fit for 3G, which also owns a majority stake in fast food giant Burger King.

Copyright 2013 ABC News Radio


Heinz Debuts New Ketchup Packets

Heinz(NEW YORK) -- A much larger Heinz ketchup packet is starting to show up in restaurants across the country. The container, shaped like a traditional Heinz bottle with a peel-back lid, holds three times more ketchup than the previous H.J. Heinz Co. squeeze packets.

The company’s ‘Dip & Squeeze’ design is also true to its name, giving ketchup lovers the option of dunking their french fries instead of trying to squeeze it out, which can be a messy way to eat — especially while on-the-go.

The new packets, which were first announced in 2010, started showing up in Chick-fil-A and international Dairy Queen restaurants earlier this year, and will soon appear in Wendy’s restaurants.  

The Dip & Squeeze marks the first Heinz Ketchup packet redesign in 42 years, spurred by consumer feedback about the inconvenience of Heinz’s traditional rectangular squeeze pouches.

“We conducted extensive testing to determine that the average consumer uses about three of the traditional Ketchup packets, which led us to determine the size of the new Dip & Squeeze package,” Heinz spokeswoman Jessica Jackson wrote in an email to ABC News. “We are continuing to work with our customers to test the new package, and have been pleased with consumer excitement that is has created.”

The company started developing the Dip & Squeeze in 2008, Jackson said.

Copyright 2011 ABC News Radio


Christmas Comes Early: Top CEO Bonuses of 2010

Photo Courtesy - Getty Images(NEW YORK) -- In a tough economic year, when even some CEOs have had to scrimp and save, others are finding big bonuses beneath the tree.

Aaron Boyd, head of research for Equilar, an executive compensation data firm, says it's still too early to say how generous a year 2010 will turn out to be for chief executives of America's biggest companies.  Most S&P 500 companies don't report their bonus numbers until March or April.  A minority, however -- companies with fiscal years ending early -- file their proxies sooner, allowing analysts like Boyd to get a peek at coming attractions.

His look at some 60 companies that have already filed shows that the CEOs of H.J. Heinz, Oracle, Cisco Systems, Nike and News Corp were the top five biggest bonus winners listed.  William R. Johnson, the chairman and president of H.J. Heinz, came in first on the list with a bonus of $8,589,063, followed by Oracle CEO Lawrence J. Ellison with $6,453,254.  The remaining three CEOs scored bonuses within the $4 million range.

What's noteworthy about their bonuses, says Boyd -- apart from sheer size -- is that all were pre-determined by formulas that take into account how the CEOs' companies performed.

"Companies are moving away from payouts based purely on the discretion of the board," he says.  The trend is toward bonuses tied more closely to performance.

Copyright 2010 ABC News Radio

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