Monday, February 18, 2013

Brazilian Fund purchase Heinz in partnership with Investor Warren Buffet

Was announced the sale of the Heinz Company-manufacturer of the famous ketchup that bears the name of the company to Berkshire Hathaway, the holding company of the American Investor Warren Buffett and to 3 g Capital, the Brazilian Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira.
"This is my business and my partner," summed up yesterday Buffett, the TV network CNBC. For $ 28 billion, Berkshire Hathaway and 3 g Capital acquires the company, with the payment of $ 72,50 per share of Heinz, which amounts to little more than $ 23 billion in cash. The remainder, $ 5 billion, is equivalent to the company's debts assumed by investors. Berkshire will invest $ 12 billion to $ 13 billion in the acquisition.
Heinz's headquarters will remain in Pittsburgh, Pennsylvania, in the United States. But much of the aggressive plans of the giant will return to the city of Nerópolis, in the State of Goiás, which has population of about 22 thousand inhabitants and where is installed the only Heinz factory in the country. The Brazil is among the priorities of the company, which, as of March, starts the production of ketchup, its flagship, in Brazil.
The American brand arrived in the country in March 2011 to pay about $ 1.2 billion for the purchase of Want food. The industry, which has 2 million employees, produces more than 100 items with the mark I between canned vegetables, fruits and sauces. Until then, Heinz products were imported.
Yesterday, in a conference with analysts, William Johnson, CEO and Chairman of Heinz, said that the company is operating at the limit of the capacity in developing countries and that it is important to increase the production in these markets, which have the highest growth rates in sales.
"Due to our performance in Brazil, Russia and China, particularly, we are looking at organic and non organic initiatives for these markets," said Johnson.
The Brazilian market are, according to Johnson, "meaningful" and are growing, although factors related to costs and inflation. "The Brazilian business has been a surprise." In its second fiscal quarter, ended October 28, Heinz's sales in Brazil have advanced 33% – the highest percentage among the countries in which the company operates. The company managed to raise prices in the country in 13.3% in the period, when food inflation measured by the IPCA/IBGE, was 3.83%.
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