H.J. Heinz Friday announced that it has completed its acquisition of an 80% stake in Coniexpress S.A. Industrias Alimenticias. Coniexpress is a leading Brazilian manufacturer of the Quero brand of tomato-based sauces, tomato paste, ketchup, condiments and vegetables.

With the acquisition, Heinz forays into Brazil with a major business for the first time. The Quero business has annual sales of around $325 million. The move gives Heinz major market access in Brazil, a key Emerging Market and the world’s fifth most populated nation. Terms of the acquisition were not disclosed.

Heinz Chairman, President and CEO William R. Johnson, noted that as a leading Brazilian brand, Quero is a strong addition to Heinz’s growing global portfolio of food products and a perfect fit with its expertise in tomato-based sauces and ketchup.

Johnson said the acquisition gives Heinz an exciting growth platform in Brazil, a key Emerging Market with nearly 200 million consumers and a fast growing economy. Johnson further stated that he expects the Quero business to approximately double Heinz’s sales in Latin America in the first full year.

The agreement for the Brazilian acquisition was first announced on March 3, 2011. The Quero brand holds number one or number two positions in numerous tomato-based categories in Brazil and a leading position in canned vegetables. The acquisition includes a modern factory in Nerópolis and a new, fully automated distribution center. The Quero business has nearly 1,800 employees.

Heinz expects the acquisition to be modestly dilutive to earnings in FY11 and FY12, but accretive to earnings starting in Fiscal 2013.  Including the Brazilian acquisition, Heinz expects Emerging Markets to generate more than 20% of its total sales in Fiscal 2012, which begins on April 28. Heinz was advised in this transaction by J.P. Morgan Securities, LLC.

H.J. Heinz Company is one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz boasts providing superior quality, taste and nutrition for all eating occasions whether in the home, restaurants, the office or “on-the-go.”

The company is a global family of leading branded products, including Heinz® Ketchup, sauces, soups, beans, pasta and infant foods (representing over one third of Heinz’s total sales), Ore-Ida® potato products, Weight Watchers® Smart Ones® entrees, T.G.I. Friday’s® snacks, and Plasmon infant nutrition. Heinz is famous for its iconic brands on six continents, showcased by Heinz® Ketchup, The World’s Favorite Ketchup®.

3rd April 2011