Kraft Heinz Merger Will Boost Revenue Not Simply Slice Costs

The 3G and Warren Buffett-backed merger between Kraft Foods and Heinz will grow revenue, not merely cut costs.
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The 3G and Warren Buffett-backed merger between Kraft Foods and Heinz will grow revenue, not merely cut costs, said Paul Pignataro, author of 'Mergers, Acquisitions, Divestitures, and Other Restructurings.' Pignataro added that Heinz had a lot costs to be cut when it was acquired and those synergies have already been wrung out. He said the Kraft Heinz combination is more of an exit strategy for Buffett and 3G than a typical leveraged buyout deal and culturally it is a good fit - and enticing investment - bringing together some of the most famous brands in American history.