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
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.