Warren Buffett and 3G acquire Heinz

Valentine’s Day is a little sweeter for shareholders of H. J. Heinz today (Feb.14) as the ketchup and baby food maker was acquired for $23.2 billion in cash by Warren Buffett’s Berkshire Hathaway and 3G Capital.

Shares of Heinz soared on the news rising nearly 20% to $72.50 in early morning trading, an all-time high and the price agreed upon by Berkshire and 3G in this deal.

The entire deal which includes debt assumption was valued at $28 million, according to Heinz and is the largest acquisition in food industry’s history.

Buffett told CNBC Thursday that Berkshire's piece of the Heinz purchase was $12 billion to $13 billion cash, for a mix of common and preferred equity.

In December 3G Capital, who owns a major stake in Burger King, reached out to Buffett to get this done.

Heinz said the transaction would be financed with cash from Berkshire and 3G, debt rollover and debt financing from J.P. Morgan and Wells Fargo.

Buffett told CNBC that Berkshire and 3G would be equal equity partners.

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Heinz will remain headquartered in Pittsburgh. The 140-year-old food brand has a large sales office in Rogers and is a long-time supplier to Wal-Mart Stores Inc.

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