Group Including Warren Buffett Announces Deal to Acquire Illinois Firm Kraft Foods


Longtime Chicago-area firm, Kraft Foods, announces deal to be acquired. The acquisition partner is Pittsburgh-based HJ Heinz, backed by 3G Capital and Warren Buffett’s Berkshire Hathaway. Buffett’s longtime interest in established American consumer brands turned to the owner of “Jell-O” jellied desserts, “Kool-Aid” sweet drinks, “Kraft” cheeses, “Maxwell House” coffee, “Oscar Mayer” prepared meats, and “Planters” nuts, as well as a wide variety of other consumer products. The deal, announced on Wednesday, March 25, was slated to present Kraft Foods shareholders with approximately $50 billion in cash and Kraft Heinz stock based on market trading prices posted on that day.

Prospects for Kraft’s corporate headquarters in Northfield, Illinois were not certain. Preliminary press announcements indicated that the merged Kraft Heinz would retain executive operations in both Illinois and Pennsylvania, for now. However, few observers of U.S. corporate customs expect Kraft Foods’ Illinois jobs to remain in place indefinitely.    

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