If you have been curious about what Warren Buffett’s next big purchase was going to be, that I’m happy to tell you that the suspense has come to an end.
We learned today that Warren Buffett, the Oracle of Omaha, is again showing us that he really likes to buy American food companies.
Berkshire Hathaway and Warren Buffett are joining with 3G Capital, a Brazilian investment group, to purchase the H. J. Heinz Co. For a total of $23.3 billion. If you add on the debt that the new owners will assume on purchase, then the deal technically comes to a total of $28 billion, we learned according to Berkshire Hathaway.
3G Capital bought Burger King back in 2010. Berkshire Hathaway currently owns Dairy Queen. They now have a way to easily stock their chains with plenty of ketchup, there’s no question about it any longer. Heinz also owns the TGI Friday’s restaurant chains, which are now also a part of their holdings.
This deal is currently the largest ever business purchase in the food industry. The H.J. Heinz shareholders will make a total of $72.50 per share in cash.
The Pittsburgh Post-Gazette says that “Berkshire Hathaway and 3G capital have pledged to maintain Pittsburgh as [Heinz’s] global headquarters, and to fulfill and continue its philanthropic support of community initiatives and related investments.”