The Kraft Heinz Company Receives Notice of Partial Stock Distribution by 3G Capital

Rhea-AI Summary

The Kraft Heinz Company (NASDAQ: KHC) announced that funds affiliated with 3G Capital, its second-largest shareholder, have distributed around 88 million shares of KHC common stock to external investors. Post-distribution, 3G's co-founders and partners will retain approximately 7.9% of the Company through 3G funds, which will be subject to a 60-day voluntary lock-up. CEO Miguel Patricio highlighted 3G's valued partnership in transforming Kraft Heinz's market position over recent years.

Positive

• 3G Capital remains a significant shareholder with continued influence, holding 7.9% of the Company.
• 3G's partnership has historically contributed to Kraft Heinz's business transformation and enhanced market position.

Negative

• The distribution of 88 million shares may indicate a reduction in 3G's direct influence over the Company.
• The lock-up period for remaining shares suggests potential market volatility in the near term.

PITTSBURGH & CHICAGO--(BUSINESS WIRE)-- The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) received notice that funds affiliated with 3G Capital (“3G”), the Company’s second largest stockholder, have distributed approximately 88 million shares of Kraft Heinz common stock to external investors in its funds.

The notice also indicated that following the distribution, 3G’s co-founders and partners would continue to hold approximately 7.9% of the Company through 3G funds and that the remaining shares held by the 3G funds are subject to a voluntary 60-day lock-up.

“3G has been a valued partner through a series of milestones that have transformed and strengthened the Company’s business and market position over the last several years,” said Miguel Patricio, Chief Executive Officer and Chair of the Board of Kraft Heinz. “We look forward to continuing to work with 3G as well as Berkshire Hathaway, our largest investor.”

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 2021 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.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “continue,” “will,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements are not historical facts and are 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 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/20220526005393/en/

Alex Abraham (media)

Alex.Abraham@kraftheinz.com

Anne-Marie Megela (investors)

ir@kraftheinz.com

Source: The Kraft Heinz Company

FAQ

What happened with Kraft Heinz and 3G Capital recently?

3G Capital, the second-largest shareholder of Kraft Heinz (KHC), distributed approximately 88 million shares of common stock to external investors.

What percentage of Kraft Heinz does 3G Capital hold now?

Following the distribution, 3G Capital's co-founders and partners will continue to hold about 7.9% of Kraft Heinz.

What is the significance of the 60-day lock-up for 3G Capital shares?

The remaining shares held by 3G funds are subject to a voluntary 60-day lock-up period, which may affect market dynamics.

How has 3G Capital influenced Kraft Heinz's business?

3G Capital has been a key partner in transforming and strengthening Kraft Heinz's market position over recent years.

What are the potential risks for Kraft Heinz shareholders?

The distribution of shares and subsequent lock-up may lead to market volatility, affecting shareholder value.