PITTSBURGH, Pa., and NORTHFIELD, Ill. -- H.J. Heinz Company and Kraft Foods Group Inc. today announced that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third-largest food and beverage company in North America with a portfolio of iconic brands.
The agreement has been unanimously approved by both Heinz and Kraft’s Boards of Directors.
The combination of these iconic food companies joins together two portfolios of brands, including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. Together the new company will have eight $1-billion brands and five brands between $500 million and $1 billion.
The complementary nature of the two brand portfolios presents substantial opportunity for synergies, which will result in increased investments in marketing and innovation, the companies said.
Alex Behring, chairman of Heinz and the managing partner at 3G Capital, said, “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both U.S. and international growth. Our combined brands and businesses mean increased scale and relevance both in the U.S. and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies.”
Heinz Co., Pittsburgh, Pa., 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.
Kraft Foods Group Inc., Northfield, Ill., is one of North America's largest consumer-packaged-food and beverage companies with annual revenues of more than $18 billion. The company's iconic brands include Kraft, CapriSun, Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Philadelphia, Planters and Velveeta.
Watch for details of the merger later today on CSPnet.com.
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