Kraft Heinz Enters Into Agreement to Acquire Brazilian Food Company Hemmer

Rhea-AI Summary

Kraft Heinz has announced its acquisition of Companhia Hemmer, a Brazilian condiment and sauce producer, as part of its strategy to enhance taste options in Brazil. This acquisition aims to bolster Kraft Heinz's Taste Elevation strategy, expanding its product portfolio and presence in emerging markets. Hemmer, a 106-year-old company noted for its quality products, is expected to benefit from Kraft Heinz's extensive distribution network. The deal is pending regulatory approval from Brazil's CADE.

Positive

• Acquisition of Hemmer expected to enhance Kraft Heinz's product offerings in Brazil.
• Expansion of Kraft Heinz's distribution network and product portfolio.
• Hemmer's established market presence supports Kraft Heinz's growth in emerging markets.

Negative

• The acquisition is subject to regulatory approval, posing a risk of delay or failure.
• Integration challenges may arise between Kraft Heinz and Hemmer's operations.

Addition of more than 250 meal-enhancing products expected to accelerate Taste Elevation strategy in Brazil, a priority market for Kraft Heinz

PITTSBURGH & CHICAGO--(BUSINESS WIRE)-- The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz”) today announced that it has entered into an agreement to acquire Companhia Hemmer Indústria e Comércio (“Hemmer”), a Brazilian company focused on condiments and sauces.

The acquisition of Hemmer – a 106-year-old company headquartered in Blumenau, Santa Catarina – is designed to expand consumers’ taste options in Brazil, while supporting Kraft Heinz’s strategy of growing its International Taste Elevation product platform and its presence in emerging markets. The completion of this transaction is subject to regulatory approvals by CADE (Brazil’s Administrative Council for Economic Defense).

“This acquisition offers us a valuable opportunity to accelerate our international growth strategy centered around Taste Elevation – our portfolio of high-quality products that enhance the taste of food,” said Rafael Oliveira, International Zone President at Kraft Heinz. “Hemmer is a legendary company in Brazil, growing net sales significantly, and will bring a delicious and diverse portfolio of products to Kraft Heinz.”

The combination aims to accelerate the growth of both companies, expanding Kraft Heinz’s presence in Brazil and leveraging its already successful expansion in condiments and sauces. Hemmer will benefit from Kraft Heinz’s distribution network and go-to-market model, including the growing foodservice channel in Brazil.

“In the last few years, Hemmer has been further strengthening itself as a food company synonymous with flavor, quality, and portfolio variety. We are extremely honored by this potential acquisition and the entire expansion potential this negotiation offers by continuing our family history in the region,” said Christian Luef, Hemmer CEO.

Rothschild & Co is acting as the exclusive financial advisor for Kraft Heinz and Madrona Law as the legal advisor to Kraft Heinz for this potential transaction. Pabst & Hadlich Advogados Associados are acting as exclusive advisors to the selling shareholders and Hemmer.

ABOUT THE KRAFT HEINZ COMPANY

We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let’s Make Life Delicious. Consumers are at the center of everything we do. With 2020 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we’re dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn and Twitter.

ABOUT HEMMER

Companhia Hemmer Indústria e Comércio (Hemmer) is a 100% Brazilian company headquartered in Blumenau, Santa Catarina, which was established in 1915, becoming a producer and seller of several types of picked and preserved food, condiments, olive oil and beverages. The company’s longevity, unusual for the Brazilian landscape, and solidity are a consequence of the quality of the products offered to consumers and the commitment and dedication put into the work. The company’s goal is to be a part of the family’s daily life, transforming the care and dedication into flavorful and quality food, standing tall among other food companies due to its self-produced diverse portfolio, as well as by the products offered with our brand by other partner companies.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “will,” “accelerate,” “expand,” “expect,” “offer,” “enhance,” “bring,” “grow,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the stock and assets included in the proposed purchase, expected benefits of the proposed purchase, impacts of the proposed purchase on Kraft Heinz’s business, financial results, opportunities, and future plans, that the purchase is subject to customary closing conditions including regulatory clearances, the timing of closing, and other statements that are not historical facts, each of which is based on Kraft Heinz’s current beliefs, expectations, estimates, and projections. These forward-looking statements are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond Kraft Heinz’s control, which could cause actual results to differ materially from those indicated in the forward-looking statements. Those factors include, but are not limited to, the timing of or failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the purchase, Kraft Heinz’s ability to achieve intended benefits of the purchase, the expected costs of the transaction, the success of business transitions, and the risk factors set forth in Kraft Heinz’s filings with the Securities and Exchange Commission, including Kraft Heinz’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Kraft Heinz disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210923005570/en/

Kathy Krenger (media)

Kathy.Krenger@kraftheinz.com

Christopher Jakubik, CFA (investors)

ir@kraftheinz.com

Source: The Kraft Heinz Company

FAQ

What is the purpose of Kraft Heinz's acquisition of Hemmer?

Kraft Heinz aims to enhance its product offerings and expand its market presence in Brazil.

What is the strategic importance of Hemmer for Kraft Heinz?

Hemmer will support Kraft Heinz's Taste Elevation strategy and provide an established portfolio of condiments.

What regulatory approval is needed for the Kraft Heinz and Hemmer acquisition?

The acquisition is pending approval from Brazil's CADE.

How will the acquisition impact Kraft Heinz's growth in Brazil?

It is expected to accelerate Kraft Heinz's growth by leveraging Hemmer's established distribution and product offerings.

When was the acquisition of Hemmer by Kraft Heinz announced?

The acquisition was announced recently, with completion subject to regulatory approvals.