Kraft Heinz, the deal-hungry food manufacturer that in February gave up on its plan to acquire Unilever), is considering a takeover of Colgate-Palmolive.
According to a person claiming to have knowledge of the matter, Kraft has lined up tens of billions of dollars from multiple banks to help finance an acquisition of the maker of toothpastes that could value it at up to $90 billion.
A takeover of Colgate, which has a current enterprise value of nearly $70 billion, would be the largest M&A transaction this year and transformative for the consumer space. It would also be a massive undertaking and a clear shift for the mostly food-focused Kraft, though not a total surprise to investors given its interest in Unilever and recent comments from management.
Speaking on the company’s Q1 conference call, CFO Paulo Luiz Araujo Basilio pointed out that Kraft, which is backed by Warren Buffett’s Berkshire Hathaway and 3G Capital, wants to own brands it would be happy owning for the long run, brands with strong equity, strong relative market share, and brands that can travel.
“I think at the end of the day that these two segments of the consumer product goods are very similar,” Basílio said in response to an inquire about possible acquisitions outside of food, “and that’s the reason why you see also many companies operating brands for consumers, sometimes food, sometimes personal care, sometimes healthcare.”
Yesterday the New York Post reported that Colgate-Palmolive’s CEO signaled it would be open to selling the company for $100 per share. Unilever and Johnson & Johnson (NYSE: JNJ) were mentioned as other possible suitors.
Kraft Heinz declined to comment on the rumor. Colgate-Palmolive hasn’t responded to a request to comment.
Source: Street Insider
Consumer behaviors and preferences are evolving rapidly. With macro shifts in society, inflation and food supply challenges set to profoundly influence how people consume food and beverages, Givaudan is exploring what the world of dairy alternatives will look like in the coming decade.
After nearly three decades with AFI, Andersen is leaving to pursue a different career path “to work on diverse projects and explore opportunities to serve as board member”. Serving as CEO since 2010, Andersen joined AFI in 1994, initially overseeing applications and R&D. Over the years, he has maintained a strong focus on the whey business.
The Kraft Heinz Company has introduced five new members to its executive leadership team, who will collaborate with Carlos Abrams-Rivera upon assuming the CEO role in 2024. Pedro Navio will assume the position of North America president at the beginning of next year. In addition, Willem Brandt, Bruno Keller, Cory Onell and Diana Frost will join Abrams-Rivera and Navio on the executive leadership team.