Kraft Heinz CEO Bernardo Hees suggested Friday that the timing may soon be right for the ketchup giant’s eagerly anticipated next acquisition.
“I think … it’s fair to say that valuations today are more attractive than they were even two months ago and the chapter of Kraft Heinz integration is behind us,” Hees said.
He underlined that Kraft Heinz continues to be attracted to companies with strong brands, international reach and scale.
Kraft Heinz reported earnings and sales on Friday that missed expectations, as attention continues to swarm the company and questions continue to linger regarding its long-term strategy. Kraft Heinz, which is backed by 3G Capital, is a renowned cost-cutter that has left some impressed with its ability to squeeze profits, and others questioning whether it has capability to grow brands.
Its model has led most onlookers and investors to believe that Kraft Heinz can only grow through acquisitions, in which it can buy new fat to cut in order to increase its earnings.
But it has been more than two years since Kraft Heinz’s last deal, its acquisition of Heinz in 2015. Kraft Heinz attempted to acquire Unilever early last year, but the deal leaked and Unilever appeared to be put off by Kraft Heinz’s now infamous cost-cutting approach to management.
Kraft Heinz has in recent weeks been particularly vocal about its corporate strategies, including a “post integration business update” on its Kraft Heinz deal, in which the company focuses on its sustainability efforts, fight against world hunger and community efforts.
“What we see in this presentation [is a] sign that Kraft wants to transact, [but] can’t find anyone that is willing to sell to it and now wants to re-invent its image so that sellers see it as a more hospitable landing spot,” analysts at Gordon Haskett said Friday.
Kraft Heinz was trading at $68 a share on Friday, lows not seen since August 2015.
By Lauren Hirsch
Source: CNBC
The facility is designed to foster innovation and deepen collaboration with customers, by offering a range of new services and solidifying its role as a central hub for customer support. Tereos’ team, supported by a network of 50 scientists, will ensure customers can innovate and meet the rising consumer demand for healthier and more sustainable products.
Glanbia has agreed to acquire Flavor Producers from Aroma Holding for an initial consideration of $300 million. Flavor Producers is a US-based flavour platform, providing flavours and extracts to the F&B industries, with a focus on organic and natural ingredients.
Lesnard, who previously worked at Nike, The North Face and Sephora, has a mission to “grow and sustain GODIVA’s position and expertise in the premium chocolate category, leveraging ongoing support from pladis to take GODIVA and its legendary chocolate to new heights.”
