By Annie Gasparro And Maria Armental
H.J. Heinz Co.'s private-equity owner accelerated its shake-up
of Kraft Foods Group Inc.'s management ranks, ahead of a
shareholder vote on approving their combination.
Kraft and Heinz, which is controlled by Brazilian investment
firm 3G Capital Partners LP, on Monday announced several
appointments to key leadership positions. The changes include the
departure of nine more Kraft executives, following those of the
chief financial officer, chief marketing officer and
research-and-development head announced in February, a month before
the merger plan was revealed.
Executives appointed by 3G at Heinz since it took over the
ketchup company two years ago will hold about half of the top 20
positions at the combined Kraft-Heinz, based on Monday's
announcement. Heinz employees, both legacy ones and newer people
chosen by 3G, accounted for eight of the top 10 positions named
Monday.
The announcement came ahead of a vote on Wednesday by Kraft
shareholders on whether to approve the proposed merger, which is
widely expected to pass. The deal also is subject to regulatory
approval.
The Kraft-Heinz merger, which was announced in March, will bring
together iconic brands like Oscar Mayer deli meat and Ore-Ida Bagel
Bites in a deal investors have pegged at around $49 billion.
Heinz Chief Financial Officer Paulo Basilio will be CFO of the
combined company, pushing out Kraft CFO James Kehoe, who was
appointed earlier this year. Eduardo Pelleissone, another legacy 3G
pick, will be senior vice president of global operations, heading
up the supply chain and procurement. Sergio Nahuz, who was named
CFO of Heinz Europe when 3G stepped in, will replace Kraft's Tom
Corley as head of U.S. sales.
Heinz executives, some of whom were with the ketchup maker
before it was taken over by 3G and Warren Buffett in June 2013,
will lead four international divisions, human resources and
corporate and government affairs.
From Kraft, Chief Operating Officer George Zoghbi will lead the
combined company's U.S. commercial business, which will have more
than $19 billion in sales. Kraft executive Jim Savina was promoted
to general counsel.
3G cut many jobs at Heinz after it took over and shuffled
management positions--sometimes repeatedly. Analysts and other
industry executives expect more changes to the staff at Kraft,
including personnel cuts, once the merger is complete.
Other Kraft leaders whose departures were announced Monday
include Diane Johnson May, head of human resources, Robert Gorski,
executive vice president of integrated supply chain, and Kim
Rucker, head of corporate and legal affairs. The company said it
would name a new leader for Canada in August, replacing Kraft's
Chris Kempczinski.
Write to Annie Gasparro at annie.gasparro@wsj.com and Maria
Armental at maria.armental@wsj.com
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