3G Capital looking to acquire food and beverage firms

Brazilian investment firm 3G Capital Partners LP is looking to acquire new food and beverage firms as part of its $5bn takeover fund that is backed by various investors.

The Wall Street Journal disclosed that the details of 3G’s potential targets are not yet clear but sources familiar with the matter said the company is exploring the possibility of acquiring $14bn Campbell Soup or PepsiCo that has a stock-market value of $140bn.

Sources further added that since PepsiCo deal is estimated to be four times as large as Heinz and Tim Hortons combined, 3G might pursue only parts of PepsiCo or collaborate with brewing firm Anheuser-Busch InBev.

While Campbell and InBev declined to comment on the matter, sources at Pepsico close to 3G say that no decision has been made yet as it is a time consuming process.

Speculation is also mounting for 3G being interested in acquiring Kellogg Co and Kraft Foods, which both have more than $20bn in stock-market value.

3G has made a name for itself with the acquisitions of big-ticket firms in the past as Heinz and Tim Hortons for a combined $36bn. Warren Buffet’s Berkshire Hathaway collaborated with 3G in both deals by providing finance.

The deals are also ranked as the second and fifth-largest takeovers in the consumer and retail sectors respectively since the start of 2013, according to Dealogic.

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Image: 3G Capital Partners is considering to acquire food and beverage firms. Photo: courtesy of amenic181 / freedigitalphotos.net.