Kraft Heinz Co. looks at $143 billion acquisition of Unilever

by Keith Nunes
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The Kraft Heinz Co. has made an offer to acquire Unilever PLC.
 

PITTSBURGH – The Kraft Heinz Co. has made an offer to acquire Unilever PLC, which the London-based company declined.

Michael
Michael Mullen, senior vice president of corporate and government affairs for Kraft Heinz

“While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction,” said Michael Mullen, senior vice president of corporate and government affairs. “There can be no certainty that any further formal proposal will be made to the boards of Unilever or that an offer will be made at all or as to the terms of any transaction.”

The offer, according to Unilever, was for $50 per share, which included $30.23 in cash and the remainder in stock, for a total valuation of approximately $143 billion. The company rejected the offer, saying it was too low.

The news of Kraft Heinz’s interest in Unilever came a day after Kraft Heinz issued its financial results for fiscal 2016 in which the company earned $3,452 million, equal to $2.84 per share on the common stock, for the year ended Dec. 31, 2016, and compared with $861 million on a pro forma basis, or 72 cents per share, in the prior fiscal year. Net sales were $26,487 million, down from pro forma sales of $27,447 million.

A combination of Kraft Heinz and Unilever would create a company with sales of approximately $83 billion and a global footprint that extends throughout food and beverage and into the personal care categories. During fiscal 2016, Unilever’s net income was €5,370 million ($5,734 million), equal to €1.94 ($2.07) per share on the common stock and a slight increase compared with the previous year when net income was €5,210 million ($5,562 million), or €1.78 ($1.90) per share.

Sales during 2016 were €52,713 million ($56,266 million), down 1 percent compared with 2015. 

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