Burger King CEO to Head Heinz - Analyst Blog
April 15 2013 - 1:40PM
Zacks
3G Capital and Berkshire Hathaway, Inc.
(BRK.B), which are due to purchase ketchup giant, H.J.
Heinz Company (HNZ), recently announced the appointment of
a new chief executive officer (CEO) for the latter after closing of
the acquisition.
Heinz agreed to be acquired in mid February by an investment
group, led by Warren Buffet’s company, Berkshire Hathaway, and
private Brazilian investment firm, 3G Capital, for $28 billion,
including debt. Berkshire Hathaway owns leading businesses across a
variety of industries, while 3G Capital is a global investment firm
holding stakes in many larger companies.
3G Capital and Berkshire Hathaway appointed the current CEO of
the fast food chain, Burger King Worldwide, Inc
(BKW), Bernardo Hees, as the new CEO of Heinz. 3G Capital holds a
large equity stake in Burger King. He will assume the new role at
Heinz after the takeover transaction closes which is expected
either by the end of second quarter or in the third quarter of this
calendar year. Thereafter, Hees will become the vice-chairman of
Burger King and continue to serve on the latter’s executive
committee. He will be replaced by Daniel Schwartz as the CEO of
Burger King.
Hees, who has played a pivotal role in growing profits at Burger
King, will replace Heinz’s current Chairman, President and CEO,
Bill Johnson. Johnson will continue in his capacity until the
transaction in complete.
The New York Times reported early last month that Heinz CEO will
earn more than $200 million if he is asked to quit. As part of the
payment, Johnson could get “golden parachute” compensations, stock
and stock options awards and other benefits.
Johnson has pioneered Heinz for 15 years and played a pivotal
role in this landmark transaction for the food industry. Over the
years, he has brought Heinz to a strong position where it is
consistently delivering solid organic growth, showing continued
strong improvement in emerging markets, making robust marketing
investments, continuously innovating and saving costs
aggressively.
As per the terms of the pending merger, Heinz’s shareholders
will receive $72.50 per share, a 19% premium to its all-time high
share price. Following the acquisition, Heinz will become a private
company.
Heinz has scheduled a special shareholder meeting in New York on
Apr 30 to vote on its pending sale. In addition to shareholders’
approval at the meeting, the transaction remains subject to some
other customary closing conditions and regulatory approvals.
Antitrust clearance has been granted in most countries.
Heinz carries a Zacks Rank #3. Another food company that has
been doing well consistently is ConAgra Foods, Inc
(CAG) – Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
CONAGRA FOODS (CAG): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
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