Heinz completes acquisition of 80% stake in Brazilian foodmaker
Posted: 1 April 2011 | H.J. Heinz Company | No comments yet
Heinz completed its acquisition of an 80% stake in leading Brazilian manufacturer Coniexpress S.A. Industrias Alimenticias to accelerate growth in emerging markets…
Heinz completed its acquisition of an 80% stake in leading Brazilian manufacturer Coniexpress S.A. Industrias Alimenticias to accelerate growth in emerging markets...
H.J. Heinz Company (NYSE:HNZ) today announced that it has completed its acquisition of an 80% stake in Coniexpress S.A. Industrias Alimenticias, a leading Brazilian manufacturer of the Quero brand of tomato-based sauces, tomato paste, ketchup, condiments and vegetables. The acquisition of the Quero business, which has annual sales of approximately $325 million, gives Heinz its first major business in Brazil, a key Emerging Market and the world’s fifth most populated nation. Terms of the acquisition were not disclosed.
“As a leading Brazilian brand, Quero is a strong addition to our growing global portfolio of food products and a perfect fit with our expertise in tomato-based sauces and ketchup,” said Heinz Chairman, President and CEO William R. Johnson. “This acquisition gives Heinz an exciting growth platform in Brazil, a key Emerging Market with nearly 200 million consumers and a fast growing economy. We expect the Quero business to approximately double Heinz’s sales in Latin America in the first full year.”
Heinz first announced the agreement to acquire a majority interest in Coniexpress S.A. Industrias Alimenticias on March 3, 2011. The Quero brand holds number one or number two positions in numerous tomato-based categories in Brazil and a leading position in canned vegetables. The acquisition includes a modern factory in Nerópolis and a new, fully automated distribution center. The Quero business has nearly 1,800 employees.
As previously announced, Heinz expects the acquisition to be modestly dilutive to earnings in FY11 and FY12, but accretive to earnings starting in Fiscal 2013.
Including the Brazilian acquisition, Heinz expects Emerging Markets to generate more than 20% of its total sales in Fiscal 2012, which begins on April 28.
Heinz was advised in this transaction by J.P. Morgan Securities, LLC.
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