Kraft-Heinz Merger: A Mouthful of a Deal

Investment firms 3G capital and Berkshire Hathaway teamed up to create a behemoth food company by merging H.J. Heinz Co. and The Kraft Foods Group. The new company is now called the Kraft Heinz Company and is listed under a new ticker: (KHC ). Dividend.com currently rates Kraft Heinz Co. as ‘Recommended’ with a DARS rating of 3.5 stars out of 5. Now the world’s 5th largest foods company in terms of sales, KHC now has a dividend yield of 2.96%, and an annual dividend of $2.20 (paid quarterly).

Heinz current shareholders will hold a 51% stake in the newly formed company. Kraft’s shareholders have been provided a one-time special cash dividend of $16.50 per share. The cost of the special dividend payout tallies $10b and was backed by 3G capital and Berkshire Hathaway.