Heinz Deal to Break Record for Food Industry

The purchase of H.J. Heinz Co. by Berkshire Hathaway Inc. and 3G Capital will set the record for largest deal in food industry history.

Warren Buffett said that the portfolio of brands under Heinz attracted Berkshire, which will pay out between $12 and $13 billion for its part in the company. At $72.50 a share, the deal values Heinz at a 20 percent premium.

Some analysts believe that mergers and acquisitions will continue to grow due to the amount of cash available for investment, estimated to be in the trillions of dollars.

Heinz is based out of Pittsburgh, and CEO William Johnson assured the community that the deal included a commitment to stay in the city.

3G has been involved in large food deals before, purchasing Burger King in 2010 for $3.3 billion dollars. It is led by billionaire Brazilian financier Jorge Paulo Lemann.