Kraft Foods Group Inc. (0.2%) (KRFT – $87.12 – NASDAQ), based in Northfield, Illinois, is the North American grocery business of Kraft Foods Inc., which was separated through a tax-free spin-off to shareholders on October 1, 2012. As a result, shareholders received one share of Kraft Foods Group Inc. for every three shares of Kraft Foods Inc. common stock, which was subsequently renamed MondelÄ“z International Inc. (0.5%). Kraft Foods Group is comprised of the North American grocery operations, excluding the snack businesses, which generated approximately $18.2 billion of revenue from leading brands such as Maxwell House coffee, Oscar Mayer meats, Jell-O desserts, Cool Whip toppings, and Cracker Barrel, Kraft, Polly-O, and Velveeta cheeses. On March 25, 2015, the H.J. Heinz Company and Kraft signed a definitive agreement to merge and form the Kraft Heinz Company. Accordingly, shareholders of Kraft will receive a $16.50 per share special dividend and 49% ownership of the newly formed company, which will be the third largest food and beverage company in North America and the fifth largest globally. The remaining 51% will be owned by current Heinz shareholders, 3G Capital, and Berkshire Hathaway.
From Mario Gabelli (Trades, Portfolio)’s Asset Fund Q1 2015 Commentary.
