Proposal for Heinz to Acquire Golden Circle
This is a win-win for both Golden Circle and Heinz. This proposed acquisition brings together two of the best known and most respected food brands in Australia.
06/10/08 Heinz confirmed that it has made an offer to purchase Golden Circle, one of Australia’s leading Health & Wellness brands in the growing ambient and chilled fruit juices market. This is in line with Heinz’s strategy of focusing on the fast-growing Health & Wellness sector. The offer of ($1.65 a share or approximately $288 million) is subject to shareholder and regulatory approval.
This is a win-win for both Golden Circle and Heinz. This proposed acquisition brings together two of the best known and most respected food brands in Australia. We believe that the Golden Circle brand will flourish under the guidance of Heinz Australia as we leverage Heinz’s global marketing and innovation capabilities together with Golden Circle’s brand strength, excellent health and wellness profile, and its capabilities in the growing ambient and chilled fruit juices market.
As the owner of many iconic global brands, Heinz understands and respects the heritage of the Golden Circle brand and its meaning to consumers. Heinz, which itself enjoys a heritage of more than 100 years in Australia, intends to retain the Northgate and Mill Park factories and to honor contracts with growers, who are at the heart of Golden Circle’s brand essence of authentic, natural Australian goodness.
The Board of Golden Circle has unanimously recommended the Heinz proposal and they plan to vote their shares in favor of the proposal on November 14.
Golden Circle was founded in 1947 and has approximately 1,000 employees and two factories in Australia. It is recognised as one of Australia’s top 15 brands. Other Golden Circle brands include The Original Juice Company and Popper Juice.
Heinz Australia has been manufacturing in Australia since 1935 and employs more than 650 people - including some 500 in the rural manufacturing centres of Girgarre, Echuca and Wagga Wagga.
Heinz has a reputation for providing nutritious foods and continues to invest in its product portfolio which is well-positioned to benefit from the shift towards health & wellness food products. Heinz believes Golden Circle’s products across beverages and food would complement its existing portfolio, with similar consumer positioning and appeal. Heinz recognises the strength of the Golden Circle and Original Juice brands and considers these brands would be an excellent complementary fit with the Heinz brand.
