Berkshire Buys Heinz in 28 Billion Deal

Berkshire Buys Heinz in $28 Billion Deal

'Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes,' said Warren Buffett.

WASHINGTON -- Warren Buffett's investment powerhouse Berkshire Hathaway and 3G Capital announced Thursday that they would take over venerable ketchup maker Heinz (IW 1000/391) in a deal valuing the company at $28 billion.

The two will pay HJ Heinz shareholders $72.50 per share in cash, a 20% premium on Heinz's Wednesday closing price.

Counting debt assumed by the buyers, the deal valued Heinz at about $28 billion, they said.

"Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products," Buffett, the chairman of Berkshire, said.

"Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes."

Copyright Agence France-Presse, 2013

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