Tag Archives: Berkshire Hathaway

Heinz Company Selling Chinese Frozen Food Subsidiary

Heinz Selling Long Fong Foods

In advance of the $23 billion buyout this month of H.J. Heinz Company, the famous ketchup and condiments producer is selling of its China packaged food business, Shanghai Long Fong Company.
The buyer is Zhengzhou Sanquan Foods Company whose stock rose on the Shenzhen stock exchange to its highest point in eleven months as a response to the announcement of the purchase. The company, which sells frozen snacks and meals on the Chinese mainland, hopes to enlarge market share and increase its competitive edge as a result of the purchase of Long Fong. The companyannounced that it will be using internal financing and has not released the value of the deal.

Heinz stated that the sale is consistent with its “global strategy to de- emphasize non-core frozen food businesses outside the U.S.”

The Pittsburgh-based company added that the move is not connected with its sale to Berkshire Hathaway Inc. and 3G Capital Inc. for approximately $23 billion.

“The decision to seek a buyer for our Long Fong frozen foods business in China is unrelated to the merger agreement with Berkshire Hathaway and 3G Capital,” a spokesperson for Heinz stated.

Rightmove Is The Right Move

Rightmove is a company that helps people buy or rent real estate or apartments. Rightmove has an internet portal to connect buyers and renters to sellers and home owners. What I like about this company is that it’s a needed business in good times and bad. In good times people look to move to better housing while in bad times people look to economize and therefore move towards cheaper housing. Whatever the economy, Rightmove provides a service and profits.

This company’s financials are good and its stock has continued to perform well. Those of you who follow my column may have noticed that I like to look at management as well as the company’s financials and past performance. I like to see that the management has had several years of business experience preferably working in the same industry or function. To me this means that the management has a deeper insight into how business works and how to deal with opportunities and threats as they arise.

The chairman is Scott Forbes who has 30 years of operations and finance experience and worked with Berkshire Hathaway.

Ed Williams is the Managing Director and has been with the company since the year 2000. Previously, he worked in consulting companies such as JPMorgan.

Nick McKittrick is the COO and Finance Director. He has also been with the company since 2000.

Jonathan Agnew is a Non-executive Director who has been with the company for 5 years after working as an investment banker for over twenty-five years. He served as a Managing Director for Morgan Stanley.

Judy Vezmar, Colin Kemp and Ashley Martin are other Non-executive Directors who add many years of valuable business experience to Rightmove. In short, Rightmove has a very exciting, dynamic and experienced management team. No wonder they’re doing well!