Billionaire investor Warren Buffett  has teamed up with Brazilian private equity firm 3G Capital to acquire global US foods giant HJ Heinz Co, for $23 billion, plus a $5-bn debt, in the biggest acquisition ever in the food industry

Under the $28-billion price tag, which includes assumption of debt, Buffett's investment company Berkshire Hathaway and Brazilian billionaire and financier Jorge Paulo Lemann's 3G will pay $72.50 per share in cash, a 19 per cent premium to Heinz's previous all-time high share price and a 20 per cent premium to its yesterday closing price.

Berkshire and 3G will invest more than $4 billion in common equity and Berkshire will also help finance the deal by buying $8 billion in preferred stock with the rest of the purchase price being financed through loans committed by JP Morgan and Wells Fargo.

Berkshire and 3G will both hold 50 per cent equity stakes in Heinz, but 3G, which also owns Burger King, will operate the business.

The deal has been approved by Heinz's board and is expected to close in the third quarter of this year after receiving shareholders and regulatory approval.

Berkshire and 3G have agreed to keep the company's headquarters at Pittsburgh as, but sre silent on the future top management of the company.

Heinz had earlier too been subject of takeover speculation.

William Johnson, chairman, president and chief executive of the company, when asked as to why the company had now accepted this offer,  said that the offer was so good that he felt "compelled" to take it to the board.

Johnson, who stands to make around $100 million from the transaction, also noted that it would be the largest deal in the history of the food industry.

The Heinz deal value is lower than the $61.6-billion spinoff of US confectioner Kraft Foods from Altria Group in 2007 and the $60.4-billion acquisition of Anheuser-Busch by InBev in 2008, according to Thomson Reuters.

For 3G, this deal is its biggest after it acquired Burger King in 2010 for $3.3 billion. For Berkshire the Heinz deal is its largest since its 2009 acquisition of Burlington Northern Santa Fe railroad in 2009.

Berkshire already holds other food-related assets which include Dairy Queen ice cream chain, chocolatier See's Candies, food distributor McLane, and is the largest investor in Coca-Cola, with an 8.9-per cent stake.

Founded 144 years ago by Henry Heinz, one of the company's first products was tomato ketchup. Since then the company has grown to become the most famous global US -food company.

Apart from its ketchup, which sells 650 million bottles every year, Heinz also markets sauces, meals, snacks, and infant nutrition. Among them are 15 well known brands that are famous in all continents and generate around 70 per cent of its $11.64 billion global sales.

Some of its popular brands are Heinz Ketchup, Lea & Perrins Worcestershire sauce, Classico pasta sauce, Pudliszki sauces, Heinz Classic salad cream, ABC soy sauce, Bagel Bites snack, Delimex frozen Mexican snacks, TGI Friday's frozen snacks, Tater Tots hash browns, Weight Watchers Smart Ones frozen dinners, and infant / nutrition brands like Plasmon, Wattie's tomato soup and Nature infant formulas.

In India, Heinz acquired the former foods division of Glaxo India, which included brands like Complan, Glucon D, Glucon C, Sampriti Ghee, and Nycil products.

Commenting on the deal, Buffett said, ''Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products.

Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes. We are very pleased to be a part of this partnership.''