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Heinz nets financing commitment for $28B buyout

J.P. Morgan and Wells Fargo have committed to provide the debt financing backing Berkshire Hathaway and 3G Capital’s planned acquisition of H.J. Heinz Company. The transaction is valued at $28 billion, including the assumption of Heinz’s outstanding debt.

Under the terms of the agreement, which was announced this morning, Heinz shareholders will receive $72.50 in cash for each share they own, which represents a 20% premium to yesterday’s closing price.

The transaction will be financed through a combination of cash provided by Berkshire Hathaway and 3G Capital, the rollover of existing debt, and the debt financing provided by J.P. Morgan and Wells.

The deal is subject to shareholder and regulatory approval and is expected to close in the third quarter of 2013, according to the company. It has been unanimously approved by Heinz’s board of directors.  – Kerry Kantin

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