By Paul Ziobro
H.J. Heinz Co. (HNZ) Chairman and Chief Executive William
Johnson's stake in the ketchup maker is worth nearly $100 million
with the pending sale to Warren Buffett's Berkshire Hathaway Inc.
(BRKA, BRKB) and 3G Capital for $23 billion.
Mr. Johnson, who has spent more than three decades at Heinz and
15 years as CEO, has the largest insider stake in Heinz, with about
1.38 million shares. Mr. Buffett and 3G Capital have agreed to pay
$72.50 in cash for each share, a 20% premium to Wednesday's close.
Including debt, the deal is valued at $28 billion.
The offer boosted the value of Mr. Johnson's stake by nearly
$16.6 million. In recent trading, shares were trading at $72.41, up
19.7%.
While Mr. Johnson's potential windfall from the buyout can be
measured, his future is less certain. During a press conference
Thursday, Mr. Johnson said that his and his management team's
future with the company hasn't been discussed yet.
"I'm way too young to retire," Mr. Johnson, 64 years old, said.
"I hope to continue to be doing something."
The deal is one of the largest-ever acquisitions in the food
space, topping the 2000 acquisition of Bestfoods, which included
Lipton tea and Knorr soups, by Unilever NV (UN, UNA.AE) for $23.2
billion. It still requires approval from Heinz shareholders and
regulators. The parties involved expect the deal to close in the
third quarter.
Write to Paul Ziobro at paul.ziobro@dowjones.com
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