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Heinz agrees to buyout by Berkshire, 3G Capital

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    Company CEO Bill Johnson speaks out

  • Duration 6:34
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Let's just say yummy the -- finding it's a -- and said he did apparently he's ordering extra catch up.

Warren Buffett's Berkshire Hathaway TV -- Brazilian backed investment firm three G capital.

To scoop up food giant eight -- times for colds when they're billion -- that works at about 700 dollars that he's -- its air Buffett said money well spent.

Because -- -- name is so iconic it's a virtual one stop -- -- -- whose brands include everything from ketchup to ore -- potato products TGI Friday's -- Weight Watchers Smart -- To the man who made the feast and apparently wet this age of Oracle's appetite.

First on fox -- CEO William Johnson bill congratulations.

Thank you very much dale good to be back -- what you -- another great staple products and and it would it's no mister Warren Buffett of course is that you know loves.

Food iconic names.

And indoors is always out there but but something got you interested in this what.

Well they first approached me about six or eight weeks ago and -- they laid out.

The beginning of a proposal which then formally sent to us week or so later.

And I think the thing that got my attention was one and I wanted to commitment to keep the business in Pittsburgh which they gave me I wanted to commitment.

To be is as generous as I could go their employees and I wanted to commitment that we -- continue to drive growth on a global basis and then they gave a surprise that I took to the Borden aboard.

Was compelled us to go forward with you know I think it's just a great deal for our shareholders it's a wonderful deal firm -- it's a wonderful day of the city of Pittsburgh.

It just it's just a terrific deal with terrific people and the Berkshire Hathaway people led by Warren Buffett and by the three G people.

-- which is and it was obviously an -- popularly attractive offer to the board -- -- this is a 20% premium in just the last.

A day alone having said that.

What do you think it's going on here I mean did did the environment economically compel this move I asked the same movies.

Two airline giants again are getting together American Airlines and US or whether that.

Propelled.

Doing a deal sooner rather later because well in this environment either you don't know what your alternatives are or you just feel you should entertain these things.

More than you normally would what what was behind it.

I think -- on our case it's a little different I mean time we're being acquired from the position a great strength we've had a great consecutive run of hi excellent performance.

And we've also traded at a high stock price and so I think in our case it was just the opportunity.

When three G approach mr.

Buffett about getting together in acquiring.

-- him what is my view one of the two or three great brands in the world certainly one of the leading brands in the United States and -- the UK and the rest of the world.

And I think the opportunity just match the time and match the -- the lending conditions available and I just think they thought it was an opportune time to go forward.

You know one could step back.

Probably from that -- don't say well -- is -- a big deals are back.

You know whether it's -- tried to take itself private for a similar -- here in reverse I guess -- add some of these other airline deals we alluded to.

That may be some pins in the water and and and this is a sign of a new arrow -- that.

You know I don't know that that's true necessarily -- like again I think in our case it's the highest price ever paid for a food business.

And the global food industry have set an all time high of that 28 billion dollars it's a terrific deal.

And so on our case it's a really enhancing deal for our shareholders some of the other deals that have been done.

Our businesses that are more troubled -- had more difficult conditions in which to operate.

Again I just thank mr.

Buffett and a three G capital people saw an opportunity to acquire a wonderful brand.

And take it could levels -- maybe we couldn't take -- two on our own.

You know I also amazes me at -- -- here you're the expert as you know bill I play one on TV and read a prompter so.

I'm wondering if part of this might be.

You Reagan never go wrong betting on food in -- -- good times and bad they have the and it's you're worried that the economy might slow down your word things like we globally bumping.

On invariably people will still have to eat and you've got to find -- -- cushion for your money.

And -- is at the very least that and Warren Buffett is that the very -- -- -- -- -- While I certainly think he's a student and you know I think it's the great iconic stature of our brand and mr.

Buffett and three G capital like great brands and has France been around for a 144 years.

It continues to grow in stature and an equity we continue to penetrate new markets.

And I think the view as you know we're still penetrating less than two or three billion people on -- so there's only another three and a half billion people to go and so.

You know I think from that standpoint you can't go wrong with a great brands -- it's just been proven time and time again in history.

And mr.

Buffett and three G capital of people who were astute enough to recognize that and I think Sar real opportunity.

All right well I wanna -- family discontent here if I can get venture to politics Warren Buffett is you know.

Was a fan of raising taxes of the upper income said that the nation could -- -- they could afford it the economy could afford it.

And the proof is in the pudding the improvement in the markets maybe -- improving the economy what it again.

Well I don't know writes it's it's hard to argue with.

You have with the oracle of Omaha has been writing a lot of things.

Go ahead and -- deal can be unraveled right here -- I think one will choose not to do that Neil I think that -- feel that we will choose to do is say.

I had lunch and mr.

Buffett on Monday I couldn't have been more thoroughly entertained.

And more thoroughly impressed with his knowledge of a variety of subjects including things as arcane as.

Marshall Goldberg used to play for the University of Pittsburgh football team.

-- mr.

Buffett.

Actually was a ball boy for the Washington Redskins -- -- our lunch was really a compendium of those kinds of instinct things.

And and while I don't necessarily agree with a modest tax comment I can tell you I certainly pay more than 30% I pay more than my secretary does so I think that's.

At the at the end of the day I don't know the relevance of that but you can't argue with the success of the markets racially.

All right.

My biggest they would view -- that you bit of of of his movies ears and not fat but -- troubles me deeply but.

Continued success and thank you very much for joining us.

Thank you as always -- for having me and continued good luck for your show I think it's a wonderful show.

I appreciate that Bill Johnson the -- CEO the man.

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