H.J . Heinz Co. is buying Kraft Foods , creating one of the largest food and beverage companies in the world with annual revenue of about $ 28 billion . The Kraft Heinz Co. will own Kraft , Heinz , Oscar Mayer , Ore-Ida and other brands . Eight of those brands have annual sales of $ 1 billion or more and five others log sales between $ 500 million and $ 1 billon every year . The deal to bring together the two companies , each more than a century old , was engineered by Warren Buffett 's Berkshire Hathaway and Brazilian investment firm 3G Capital . The two will invest another $ 10 billion in the new company . Scroll down for video . Making moves : H.J . Heinz Co. is buying Kraft Foods , creating one of the largest food and beverage companies in the world with annual revenue of about $ 28 billion . Kraft Heinz will maintain headquarters in Pittsburgh , where Heinz is based , and also in the Chicago area , where Kraft resides . Shares of Kraft jumped 26per cent Wednesday before the opening bell . Kraft shareholders will receive stock in the combined company and a special cash dividend of approximately $ 10 billion , or $ 16.50 per share . Each share of Kraft will be converted into one share of Kraft Heinz . Feeding the nation : Kraft Heinz will maintain headquarters in Pittsburgh , where Heinz is based , and also in the Chicago area , where Kraft resides . Here 's a look at companies and brands that will be combined under the Heinz-Kraft deal : . NAME : H.J . Heinz Co . LOCATION : Pittsburgh . EMPLOYEES : 24,500 . NET INCOME : $ 657.1 million ( 2014 ) REVENUE : $ 10.9 billion ( 2014 ) BRANDS : Classico pasta sauce , Ore-Ida , Heinz Ketchup , Lea & Perrins , Bagel Bites , Nurture infant formula , Weight Watchers Smart Ones , and Golden Circle . NAME : Kraft Foods Group Inc . LOCATION : Northfield , Illinois . EMPLOYEES : 22,100 . NET INCOME : $ 1.04 billion ( 2014 ) REVENUE : $ 18.2 billion ( 2014 ) BRANDS : A1 , Athenos , CapriSun , Breakstones , Cracker Barrel , Cool Whip , Cheez Whiz , Country Time Lemonade , Jell-O , Kool Aid , Maxwell House , Oscar Mayer , Planters , Stove Top and Velveeta . Current Heinz shareholders will own 51per cent of the combined company , with Kraft shareholders owning a 49per cent stake . Annual cost savings estimated to be $ 1.5 billion are expected to be booked by the end of 2017 . Buffett and 3G Capital snapped up Heinz in a deal valued at $ 23.3 billion two years ago . 'This is my kind of transaction , ' said Buffett in a printed statement . 'Uniting two world-class organizations and delivering shareholder value . ' I 'm excited by the opportunities for what this new combined organization will achieve . ' Heinz CEO Bernardo Hees will become CEO , Alex Behring , Heinz chairman and managing partner at 3G Capital , will be chairman . Kraft CEO and Chairman John Cahill will become vice chairman . The deal still needs a nod from federal regulators as well as shareholders of Kraft Foods Group Inc. , but the boards of both companies unanimously approved it . The planned closing is set for the second half of the year . Kraft Heinz plans to keep Kraft 's current dividend per share once the transaction closes . Kraft has no plans to change its dividend before the deal is complete .
The deal to bring together the two companies was engineered by Warren Buffett 's Berkshire capital and Brazilian investment firm k G Capital . Kraft Heinz partners maintain offices in Pittsburgh , where Heinz is based , and also in the Chicago area , where Kraft operates . The deal still needs a nod from federal regulators as well as representatives of Kraft Foods Group partners . The planned merger is set for the second half of the year .