Investment firms Warren Buffett's Berkshire Hathaway and 3G Capital have entered into a definitive merger agreement to acquire American food company HJ Heinz for $28bn in cash, including the assumption of Heinz’s outstanding debt.
The acquisition will be financed through cash provided by Berkshire Hathaway and affiliates of 3G Capital and debt financing that has been committed by JP Morgan and Wells Fargo.
Lazard is the lead financial advisor, while J.P. Morgan and Wells Fargo are also serving as financial advisors to the investment consortium.
Under the terms of the deal, Heinz shareholders will receive $72.5 in cash for each share of common stock.
Heinz chairman, president and chief executive officer William Johnson said that the transaction provides tremendous value to Heinz shareholders.
"As a private enterprise, Heinz will have an opportunity to drive further growth and advance our commitment to providing consumers across the globe with great tasting, nutritious and wholesome products," Johnson added.
The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to be completed in the third quarter of 2013.