KKR warms up banks for its run at Kraft Heinz’s Australian business

KKR warms up banks for its run at Kraft Heinz’s Australian business

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Kraft Heinz, whose ketchup bottles and other condiments are frequently spotted in supermarket shoppers’ carts, made $890 million in revenue for the year ending December 2021 from selling condiments, pre-made meals, infant food and the like. This was down from $917.5 million the year before. It posted $59.3 million profit or the year.

Its Australian history goes as far back as 1880s, when Heinz products were imported for American miners. It started local production in 1935, making and bottling horseradish out of a factory in Victoria.

Should the talks between UBS/Heinz and KKR come to fruition, they would spell another win for KKR in the supermarket aisle.

The private equity investor already owns Tim Tim owner, Arnott’s, picking it up in a $3.2 billion deal from Campbell Soup Company, that also included Campbell’s Australian business.

Campbell Soup Company put its international arm on the auction block in 2019, via Goldman Sachs, after facing pressure from activist hedge fund Third Point to break up the company in a bid to unlock value for shareholders.

The auction drew attention from The Carlyle Group, Bain Capital, Affinity Equity Partners and Pacific Equity Partners, among others. KKR’s winning bid for Arnott’s and Campbell Soups’s Australian unit was advised by Jefferies.

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