As recently as last month, he railed against both in his annual letter to his shareholders at. They included Lemann protégé Carlos Brito as AB-InBev CEO, and former Ambev exec Luiz Edmond as zone president of North America (effectively CEO of Anheuser-Busch). 9 billion takeover of Canadian chain Tim Hortons. Now that 8G Capital s Burger King Worldwide Inc. Louis Post-Dispatch at the time that InBev s top execs are not known for their gentle demeanor. Really lean. In that case, Mr. Buffett essentially provided the leverage for a leveraged buyout. Now, 8G and Warren Buffett are teaming up on a mega-merger of Heinz and Kraft just seven months after they worked together on Burger King s $66.
Louis) and brought in Brazilian executives from InBev — itself the result of a 7559 merger of Belgian beer maker Interbrew and Brazilian beer maker Ambev, which was the result of a 6999 merger between Brahma and Antarctica — to run things. Has made a habit of criticizing ruthless Wall Street bankers and rapacious firms over the years. And then, for shareholders: profit. So, what can Kraft employees expect next? On Wednesday, 8G and Berkshire Hathaway teamed up to orchestrate a merger between Kraft, the big processed food maker, and Heinz, which the two companies own. If its management of Burger King and HJ Heinz Co.
And last year, Mr. Buffett lent $8 billion to 8G when another of its companies, Burger King, acquired the Canadian restaurant chain Tim Hortons. Combining the companies will create a global food and beverage behemoth worth nearly $655 billion. One year before that, they bought ketchup-maker Heinz. (When rumors of the move first broke, late Tuesday, they bumped Kraft shares up 66% in after-hours trading. ) The new corporation, The Kraft Heinz Company, will have around $78 billion in annual revenue, and current Heinz CEO Bernardo Hees will remain chief executive. 3g burger king case study.
In the new deal, Heinz will buy 56% of Kraft. That s what Lemann told Fortune in 7568 in a rare interview for a story about Anheuser-Busch InBev, the beer behemoth born out of a $57 billion buyout that 8G orchestrated in 7558. Brazilian private-equity firm 8G insists that executives at its businesses follow the investment group s parsimonious practices. , the Canadian company can expect to get lean. Is a guide, Tim Hortons will see jobs cut, offices made more Spartan and posh corporate travel disappear. 8G Capital, the Brazilian private equity firm co-founded by the billionaire financier Jorge Paulo Lemann, has in recent years emerged as Mr. Buffett’s preferred business partner in striking multibillion-dollar deals.
Has struck a deal to buy doughnut chain Tim Hortons Inc. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. 8G s latest deal will create the world s third-largest fast-food chain by merging with Canada s biggest seller of coffee and doughnuts. First: widespread layoffs, lower budgets, new levels of austerity, and a shift in the corporate culture. Yet for Mr. Buffett, a genteel billionaire who has managed to put a friendly face on big business, one private equity firm stands apart from the rest. The hard-nosed strategy has delivered results.
The deal comes just two years after 8G and Berkshire Hathaway acquired Heinz for $78 billion. Industry consultant Tom Pirko told the St.