By Drew FitzGerald
A $28 billion offer for H.J. Heinz Co. (HNZ), including debt,
would rank as the largest-ever takeover of a pure-food producer,
according to research firm Dealogic.
Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB) on
Thursday partnered with private-equity firm 3G Capital to mount the
deal, worth about $23 billion excluding acquired debt, in one of
the largest deals in any industry since the 2008 financial
crisis.
The deal for the Pittsburgh food producer rivals the $31.1
billion buyout of RJR Nabisco by Kohlberg, Kravis, Roberts &
Co. in 1988, though that agreement included tobacco interests.
A bigger deal closed two decades later through InBev SA's nearly
$60 billion acquisition of Anheuser-Busch Cos.--creating global
alcohol giant Anheuser-Busch InBev NV (ABI.BT, BUD)--though that
combination focused on Anheuser's beverage brands, namely the
American brewer's Budweiser beer.
Vivendi SA (VIVEF, VIVHY, VIV.FR) also booked a bigger deal with
its 2000 acquisition of beverage conglomerate Seagram Co. for $31.2
billion, according to Dealogic. The research firm's rankings
accounted for debt acquired through the transactions.
In food, consumer-brand conglomerate Unilever NV (UN, UNA.AE)
held the previous record for biggest takeover with its 2000
acquisition of Bestfoods for $23.2 billion. That deal brought
brands such as Lipton tea, Knorr Soups and Lever soaps under the
Unilever umbrella.
Dealogic's figures included debt acquired through the
takeovers.
Kraft Foods has changed hands through bigger deals in recent
years, though the transactions involved distributions to
shareholders rather than an outright acquisition. Altria Group Inc.
(MO) first spun off Kraft assets worth $56.2 billion to
shareholders in 2007.
Kraft Foods split in two last year. Kraft's predecessor became
Mondelez International Inc. (MDLZ), worth $61.6 billion at the
time, while its grocery-food business, which kept the name Kraft
Foods Group (KRFT), was worth $36.1 billion, according to analysis
by Thomson Reuters. Thomson's figures also included the value of
acquired debt.
-Erik Holm contributed to this report.
Write to Drew FitzGerald at andrew.fitzgerald@dowjones.com
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