Heinz (HNZ) Makes Additional $60M Payment to Transpac Over Foodstar Acquisition
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H.J. Heinz Co. (NYSE: HNZ) has made an early earn-out payment of $60 million to Transpac Industrial Holdings Ltd., a Singapore-based private equity holding company, and various Transpac Funds, the previous owners of Heinz’s Foodstar business in China. Heinz acquired Foodstar in November 2010. The earn-out payment is in addition to the original purchase price of $165 million.
This payment, which is 20% higher than the original provision, is based on the outstanding financial performance of Foodstar in China and was accelerated from July 2014 based on the parties’ decision that the objectives of the earn-out arrangement have now been achieved. Heinz will record this payment as a special item of $0.04 of earnings per share (EPS) in the fiscal third quarter, which ends January 27, 2013.
This payment, which is 20% higher than the original provision, is based on the outstanding financial performance of Foodstar in China and was accelerated from July 2014 based on the parties’ decision that the objectives of the earn-out arrangement have now been achieved. Heinz will record this payment as a special item of $0.04 of earnings per share (EPS) in the fiscal third quarter, which ends January 27, 2013.
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