Warren buffett and Brazil financiers jorge Paul Lemann cooperation, buy tomato sauce manufacturers heinz company (HNZ) for 2.32 billion dollars, this may be the first step of food and beverage industry merger wave.
Analysts and close to the deal said people, heinz might be a good starting point, consolidate similar staple food, especially considering the more ambitious Lemann private equity company 3 g capital company.
Including bear debt, heinz value $2.8 billion deal, it is called the largest industry history,. Buffett's Berkshire hathaway company (BRK - A) (BRKb. N) and 3 g will pay $72.50 per share stock high premium by 19%.
Heinz shares higher than offer prices began to rise slightly, although buffett warned him not going to improve his bid and the stock market dropped below the trademark noon. The company's share price has been torn, and in the past four years almost doubled, but analysts said, the price is fair.
They also said that the deal may be a more extensive food and beverage industry merger wave of the first step.
"Maybe for the average consumer necessities group, it may start to merge some talk about. Even if it is legal entity cash abundance, interest rates low, but it seems that the meaning," Edward Jones analysts Jack Russo said.
Companies, such as the universal mill (GIS) and jin bao soup (CPB) - itself has long been seen as a potential heinz merger partners - rising news.
Any purchase can help heinz further diversification and expand its international image. It has dominated ketchup operations, with nearly 26% of global market share and 59% of the market, the domestic, according to Euromonitor International data.
The company produced the most practical, the sales in Europe, but the traditional north American consumer electronics business is the most profitable.
But the real growth engine has been in the Asia/Pacific region, its sales in the last fiscal year increased almost 11%, sauce and Chinese infant food demand in the part.
Buffett HUNTING growth
Surprising buy satisfied, at least part of the growth, through the acquisition, buffett's hunting. He was in 2012 at least two unnamed preferential more than $2 billion collapse and depressed, said he will do $3 billion deal, this year, to help fuel Berkshire's growth engine.
On Thursday night in the submitted to the regulatory document, Berkshire said, it provides $1.212 billion worth of stock, including common stock, warrant and preferred stock, preferred liquidation for $80 billion and 9% of the dividend.
Barclays Capital (Barclays Capital) jay Gail cloth trade in 19 times high valuations heinz expected 2014 earnings per share, but it will improve the Berkshire's consumption combination.
Berkshire hathaway has a variety of food assets, including dairy queen of chocolate ice cream chain think candy and food dealer mike Ryan. Warren buffett, the famous love cheese burgers, jokingly said, he is very familiar with the heinz company's products have been and "this is my a deal."
It is really an unusual Berkshire's cooperation, private equity investment, although from a historical point of view, buffett's purchasing have buy out his own. He and 3 g founder jorge Paul Lemann has met for many years, and buffett said, Lemann December and heinz idea in near him.
A Berkshire investors said, his all sorts of feelings deal because of limited domestic growth prospects.
"We have a little hesitant, because their staple food company in the United States have no any lever, his meade, in Seattle, meade capital management company chief investment officer said bill." But at the same time, he said, buffett might be willing to accept the bonds, such as stable return, even if it is not necessarily a "home run".
The second investors, Michael from destination wealth management in California Walnut Creek, said he like to buy, because it provides cash flow of other transactions.
"This is better than using the current money market instruments, cash, said:" from the top of the company's CEO, the investment committee chairman.
3 g business expansion
For 3 g and Brazil's root, a little-known company, buy is its investment fast-food chain burger king (BKW. N), which in the end of 2010 purchase it is still an important natural add things equity.
Historically, 3 g more investors, acquirers. The largest shareholding, including Delphi car (DLPH. N), Newell Rubbermaid company (NWL. N) and anadarko petroleum company (APC. N).
Lemann, travel around the financiers in Switzerland, his money in the bank and the help, make concerted effort, and finally form the brewing beer giant budweiser inbev trading got ill. (ABI. BR), he is "Forbes" ranked 69th richest billionaire dollars, $1.2 billion of wealth.
3 g Alex Behring company operating funds in New York. He appeared in Pittsburgh Thursday's press conference, heinz management, discussing trade -, soothe anxiety local people, the company will continue to be in there, will continue to support local charities.
But at the same time, behring said, it is too early to talk about in the company's cost cutting. 3 g and Berkshire, this is a hands-on, known as the positive control cost in its business.
Pittsburgh root
Certain is CEO bill Johnson would stay at. Only in the history of the fifth chairman, strong and wide acclaim heinz recent strong growth.
He said: "I'm too young to retire," press conference, the discussion has not yet started to use 3 g heinz future management in detail.
Company, its trademark ketchup bottle, heinz 57 sauce, and other brand including ore IDA frozen potatoes, increase the net sales in the past eight fiscal year of a row.
Heinz said that the deal will funds from burke and
 



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