Kraft Foods shareholders have approved the sale of the company to the H.J. Heinz Company. The transaction closed on July 2, and the combined company will now be known as The Kraft Heinz Company.
The combination of these food companies joins together two portfolios of brands. Together, the new company will have eight $1 billion-plus brands and five brands that are valued between $500 million and $1 billion. Among those are Kraft Foods’ Oscar Mayer, Louis Rich and Lunchables brand meat and poultry products. Kraft Foods is also the seventh largest turkey processor in the United States, processing 280 million pounds in 2014, according to the WATTAgNet Top Poultry Companies Database.
Under the terms of the agreement, which was initially announced in March, Kraft shareholders will own a 49 percent stake in the combined company, and current Heinz shareholders will own 51 percent on a fully diluted basis.
“This combination offers significant cash value to our shareholders and the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as we bring Kraft’s iconic brands to international markets. We look forward to uniting with Heinz in what will be an exciting new chapter ahead,” John Cahill, Kraft chairman and CEO, said when the transaction was proposed.
The newly-formed joint company, which is expected to become the third-largest food and beverage company in North America, will be listed under the symbol KHC on the NASDAQ exchange.