H. J. Heinz M&A Harvard Case Solution & Analysis

This case describes the acquisition of H.J. Heinz Company by 3G and Berkshire Hathaway during the December 2012. Jorge Paulo Lemann, co-founder and partner at 3G, proposed to Warren Buffett about this acquisition because both known each other for years. They jointly decided that the Heinz turnaround had been successful and they had the opportunities to expand globally.

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As the 3G and Berkshire Hathaway informed about the interest they had in the acquisition of Heinz. William Johnson, Heinz CEO, presented the investors’ offer of $70.00 per share of outstanding common stock to the Heinz board.

The board and consultants of Heinz, after much discussion, informed that without any significant financial terms they would not have the interest in this acquisition. After two days discussion, both of the acquiring parties came with little improve proposal of $72.50 per share, for a total transaction value of $28 billion that also included outstanding debt of Heinz.

After some forty days negotiations all of the parties signed the deal. But whether it was a fair deal? After this turnaround what would be the outcomes for employees, shareholders, management and citizen of Pittsburgh, the city where the company’s headquarters is situated? In the end, how did the activist investors bring the Heinz to this deal stage?

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