Kraft – Heinz Investor Presentation

Kraft – Heinz Investor Presentation

Key Transaction Highlights

Consideration

  • Kraft shareholders to own 49% and Heinz shareholders to own 51% of the combined entity
  • Kraft shareholders to receive a cash payment of $16.50 per share ($10 billion aggregate value), fully funded by $10 billion of new common equity contributed by Heinz shareholders

Capital Structure

  • Strongly committed to Investment Grade capital structure for long-term sustainability
  • Refinance $9.5bn of existing Heinz High-Yield debt with Investment Grade debt at transaction close
  • Call Preferred Equity in 2016 and replace with Investment Grade debt, with $450 -$500 million in annualized cash savings

Value Creation

This hedge fund is so optimistic about COVID-19 that they’re short Clorox [In-Depth]

coronavirusA lot has happened since the coronavirus pandemic began, but aside from the temporary selloff in March, the stock market has continued to hum along as if nothing has been happening. There's no denying that the financial markets have been changed by the pandemic, and investors should be thinking differently when it comes to investing Read More


  • Significant synergy potential – $1.5 billion in run-rate annual cost savings by 2017
  • Significant revenue synergy opportunity, with strong platform for international growth
  • Meaningful working capital improvements
  • Immediate cash payment and EPS accretive by 2017

Dividend

  • Maintain Kraft’s current dividend per share, which is expected to increase over time

Timing

  • Transaction expected to close during H2 2015

Key Governance Highlights

Management

  • Bernardo Hees, Chief Executive Officer of Heinz, will be appointed Chief Executive Officer of The Kraft Heinz Company
  • The new executive team for the combined global company will be announced during the transition period, but no later than transaction closing

Board of Directors

  • Board of Directors of the combined company will consist of five members appointed by the current Kraft Board, as well as six members appointed by the current Heinz Board
  • From Heinz, members of the new Board will be Alex Behring, Warren E. Buffett, Jorge Paulo Lemann, Marcel Telles, Greg Abel and Tracy Britt Cool
  • Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, will become Chairman of The Kraft Heinz Company
  • From Kraft, members of the new Board will be John T. Cahill, John C. Pope, Mackey J. McDonald, L. Kevin Cox and Jeanne P. Jackson
  • John Cahill, Kraft Chairman and Chief Executive Officer, will become Vice Chairman and Chair of a newly formed Operations and Strategy Committee of the Board of Directors

Community

  • The Kraft Heinz Company will be co-headquartered in Pittsburgh and the Chicago area
  • Committed to supporting local charities and community relationships in the communities in which it operates

Kraft - Heinz

See full PDF below.