Firms including Warren Buffett's to buy Heinz - FOX 29 News Philadelphia | WTXF-TV

Firms including Warren Buffett's to buy Heinz

Posted: Updated:

NEW YORK (AP) -- H.J. Heinz Co. says it agreed to be acquired by an investment consortium including billionaire investor Warren Buffett in a deal valued at $28 billion.

The ketchup company says Heinz shareholders will receive $72.50 in cash for each share of common stock they own. The deal value includes the assumption of Heinz's debt. Based on Heinz's number of shares outstanding, the deal is worth $23.3 billion excluding debt.

"It's our kind of company," Buffett said in an interview on CNBC, noting its signature ketchup has been around for more than a century. "I've sampled it many times."

In addition to its ketchup, Heinz makes Classico spaghetti sauces, Ore-Ida potatoes and Smart Ones frozen meals. Berkshire Hathaway and 3G Capital, the investment firm which also bought Burger King in 2010, say Heinz will remain headquartered in Pittsburgh.

Given the saturated North American market, Heinz has increasingly looked to emerging markets for growth. In its last quarter, the company said emerging markets made up 23 percent of sales.

The per-share price for the deal represents a 20 percent premium to Heinz's closing price of $60.48 on Wednesday. Buffett said Berkshire will still have room to make more acquisitions, noting that the firm's businesses continually replenish its cash supply.

"Anytime we see a deal is attractive and it's our kind of business and we've got the money, I'm ready to go," Buffet said.

  • Your MoneyMore>>

  • Doctors making 'house calls' via app

    Doctors making 'house calls' via app

    Thursday, July 31 2014 10:15 PM EDT2014-08-01 02:15:42 GMT
    Even when it's a simple stomach ache, many of us look to the web for answers. Now, a licensed doctor can diagnose patients through the online service called HealthTap. Patients have been able to type in questions and get answers for free from 62,000 doctors. But now, patients can have live video conferences with doctors for $99 a month, plus $10 for every additional family member.
    Even when it's a simple stomach ache, many of us look to the web for answers. Now, a licensed doctor can diagnose patients through the online service called HealthTap. Patients have been able to type in questions and get answers for free from 62,000 doctors. But now, patients can have live video conferences with doctors for $99 a month, plus $10 for every additional family member.
  • Road-trip vacations that don't break the bank

    Road-trip vacations that don't break the bank

    Thursday, July 31 2014 5:37 PM EDT2014-07-31 21:37:29 GMT
    Last-minute vacations don't need to be a headache or ridiculously expensive, especially if you make it a road trip. Even if you don't have a car, renting one can be an affordable option.Lauren Lyons Cole, a personal finance contributor to TheStreet.com, has some suggestions.
    Last-minute vacations don't need to be a headache or ridiculously expensive, especially if you make it a road trip. Even if you don't have a car, renting one can be an affordable option.Lauren Lyons Cole, a personal finance contributor to TheStreet.com, has some suggestions.
  • OKCupid, Facebook not alone in studying consumers

    OKCupid, Facebook not alone in studying consumers

    Tuesday, July 29 2014 4:51 PM EDT2014-07-29 20:51:44 GMT
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
Powered by WorldNow

WTXF-TV
330 Market Street
Philadelphia, PA 19106-2796

Phone: (215) 925-2929
Fax: (215) 982-5494

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices