Heinz Completes Acquisition of 80% Stake in Brazilian Foodmaker to Accelerate Growth in Emerging Markets
April 01 2011 - 12:02PM
Business Wire
H.J. Heinz Company (NYSE:HNZ) today announced that it has
completed its acquisition of an 80% stake in Coniexpress S.A.
Industrias Alimenticias, a leading Brazilian manufacturer of the
Quero brand of tomato-based sauces, tomato paste, ketchup,
condiments and vegetables. The acquisition of the Quero business,
which has annual sales of approximately $325 million, gives Heinz
its first major business in Brazil, a key Emerging Market and the
world’s fifth most populated nation. Terms of the acquisition were
not disclosed.
“As a leading Brazilian brand, Quero is a strong addition to our
growing global portfolio of food products and a perfect fit with
our expertise in tomato-based sauces and ketchup,” said Heinz
Chairman, President and CEO William R. Johnson. “This acquisition
gives Heinz an exciting growth platform in Brazil, a key Emerging
Market with nearly 200 million consumers and a fast growing
economy. We expect the Quero business to approximately double
Heinz’s sales in Latin America in the first full year.”
Heinz first announced the agreement to acquire a majority
interest in Coniexpress S.A. Industrias Alimenticias on March 3,
2011. The Quero brand holds number one or number two positions
in numerous tomato-based categories in Brazil and a leading
position in canned vegetables. The acquisition includes a modern
factory in Nerópolis and a new, fully automated distribution
center. The Quero business has nearly 1,800 employees.
As previously announced, Heinz expects the acquisition to be
modestly dilutive to earnings in FY11 and FY12, but accretive to
earnings starting in Fiscal 2013.
Including the Brazilian acquisition, Heinz expects Emerging
Markets to generate more than 20% of its total sales in Fiscal
2012, which begins on April 28.
Heinz was advised in this transaction by J.P. Morgan Securities,
LLC.
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ABOUT HEINZ: H.J. Heinz Company, offering “Good Food Every Day”™
is one of the world’s leading marketers and producers of healthy,
convenient and affordable foods specializing in ketchup, sauces,
meals, soups, snacks and infant nutrition. Heinz provides superior
quality, taste and nutrition for all eating occasions whether in
the home, restaurants, the office or “on-the-go.” Heinz is a global
family of leading branded products, including Heinz® Ketchup,
sauces, soups, beans, pasta and infant foods (representing over one
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