Brazilian private equity firm 3G Capital and Warren Buffet are partnering again, this time on the proposed merger of Heinz and Kraft. The merger will create the third largest food company in the US with revenues projected to be around $28 billion.
The combined entity will be known as the Kraft Heinz Company, and will control a handful of top tier US food brands.
The transaction is still pending regulatory approval.
Heinz is already owned by 3G Capital and Warren Buffet’s Berkshire Hathaway, the two companies acquired Heinz for 23.2 billion in 2013.
According to the reported terms of the deal, current Heinz CEO Bernardo Hees will maintain his role in the top spot of the merged company.
Kraft Heinz Company will also maintain dual headquarters in Pittsburgh and Chicago, the locations of the existing headquarters of both companies.
Alex Behring, chairman of Heinz and the managing partner at 3G Capital, will become chairman of the new company. Remaining roles within the management team will be chosen internally during the integration process.
Kraft shareholders will receive a 49 percent interest in the new entity. Kraft shares were up over 30 percent on the news.