Heinz execs to lead new company with Kraft
Two days before Kraft shareholders are scheduled to vote on a merger with Heinz, the companyannounced a slew of new executives.
Paulo Basilio was appointed executive vice president and CFO, having joined Heinz in June 2013 as CFO. Kraft's CFO James Kehoe and other Kraft executives are being let go in 30 days or when the merger is completed, Heinz said in a statement.
"Our new leadership team represents the best of the best in business with proven track records for delivering results.I am thrilled that this world-class group of executives will join me to further strengthen our iconic brands with our industry-leading go-to-market strategies, innovation pipeline, and global infrastructure,"future Chief Executive Officer Bernardo Hees said in a statement.
Kraft and Heinz agreed to merge in March in a deal backed by Warren Buffett's Berkshire Hathaway and Brazilian private investment group 3G Capital. The new company will have a portfolio of well-known food and snack brands such as Heinz, Kraft, Oscar Mayer, Jell-O, and Philadelphia.
Effective upon the close of the merger transaction, The Kraft Heinz Company senior leadership team is:
Paulo Basilio is appointed EVP and Chief Financial Officer. Mr. Basilio joined Heinz in June 2013 as Chief Financial Officer. He is responsible for all the finance functions and the investor relations area.
Matt Hill is appointed Zone President of Europe. Mr. Hill has been Zone President of Heinz Europe since June 2013. Prior to his current appointment, Mr. Hill was President of Heinz UK & Ireland. Mr. Hill joined Heinz in 2010 as Chief Marketing Officer for Heinz UK.
Emin Mammadov is appointed Zone President of Russia, India and Middle East, Turkey & Africa. Mr. Mammadov joined Heinz in 2006 as Marketing Director for Heinz Russia and has been President of RIMEA since 2013.
Michael Mullen is appointed SVP of Corporate and Government Affairs. He will be responsible for leading internal and external communications, CSR and government affairs. He will also have responsibility for the Company Foundation, real estate and facilities. Mr. Mullen joined Heinz in 1998.
Eduardo Pelleissone is appointed EVP of Global Operations. In this role, Mr. Pelleissone will have direct accountability for the Company’s supply chain, quality, procurement and operations functions in North America and globally. Mr. Pelleissone joined Heinz in July 2013 as Head of Operations.
Marcos Romaneiro is appointed Zone President of Asia Pacific. Mr. Romaneiro has been Zone President of Heinz Asia Pacific since June 2014. Mr. Romaneiro joined Heinz in 2013 as SVP Global Finance.
Francisco Sa is appointed Zone President of Latin America. Mr. Sa joined Heinz in June 2014 as Zone President of Heinz Latin America. Mr. Sa served as Zone President for AB InBev’s Latin America South business from 2012 to 2014.
Jim Savina is promoted to SVP, General Counsel and Corporate Secretary. Mr. Savina joined Kraft in 2013, serving in legal leadership positions and as Chief Compliance Officer. In his new role, Mr. Savina will lead the Company’s legal function, including corporate governance & securities, transactions, regulatory, intellectual property, litigation and labor & employment.
Melissa Werneck is appointed SVP Global Human Resources, Performance and IT. Ms. Werneck joined Heinz in July of 2013 and led Heinz’s talent development and the Integrated Management System, which includes the Management by Objectives (MBO) Program.
George Zoghbi is appointed Chief Operating Officer of U.S. commercial business. In his role, Mr. Zoghbi will lead the Company’s more than $19 billion U.S. business comprised of five commercial business units. Mr. Zoghbi has been COO at Kraft since February 2015. Mr. Zoghbi joined Kraft in 2007 as Vice President and Area Director of Australia and New Zealand.
Boot Barn steps up omnichannel strategy
Boot Barn has taken a significant step forward in its e-commerce strategy now that its acquisition of Sheplers is complete.
The Sheplers acquisition represents a significant step forward for Boot Barn’s omni-channel strategy, growing Boot Barn’s e-commerce penetration from 4% to 15%. The addition of Sheplers’ e-commerce platform provides opportunities to create a dual brand online offering, leverage Sheplers’ domestic and international customer traffic, and create operating efficiencies across the combined online businesses.
Jim Conroy, CEO of Boot Barn, said: “We are extremely pleased to have closed on our acquisition of Sheplers and appreciate the hard work of the Boot Barn and Sheplers’ teams for their efforts in completing this transaction in a timely manner. The acquisition of Sheplers is a significant step forward in our omni-channel strategy. This acquisition provides us with opportunities to create a dual-brand online offering, leverage Sheplers’ domestic and international customer traffic, and generate operating efficiencies across the combined online businesses. It also enhances our store footprint and builds our position in key markets as we rebrand the Sheplers’ stores to the Boot Barn banner.”
The company financed the acquisition and refinanced approximately $172 million of its and Sheplers’ existing indebtedness with an initial borrowing of $57 million under a new $125 million syndicated senior secured asset-based revolving credit facility for which Wells Fargo Bank, National Association, acted as agent, and a $200 million syndicated senior secured term loan for which GCI Capital Markets LLC acted as agent.
The acquisition is expected to generate $6 million to $8 million of annual synergies and be accretive to fiscal 2016 earnings (ended March 26, 2016), excluding estimated one-time transaction and integration costs of $14 million, and to be approximately 10% accretive post integration, which is expected to be completed in calendar year 2016.
By rebranding the Sheplers stores to the Boot Barn banner, consistent with the strategies of its prior two acquisitions, Boot Barn will enhance its store footprint by adding eight new retail markets and build its position in Texas and Colorado.
The businesses are highly complementary, with a similar western lifestyle focus, customer base and store experience, which will allow Boot Barn to extend key merchandise categories and brands across the chain and access a combined database of more than five million customers.
Bob Myers, CEO of Sheplers, said: “Our ability to grow the largest online business in the industry started with building upon our loyal customer base from our long-standing catalog format. Joining the Boot Barn family will allow Sheplers to provide value to a larger customer base through both in-store and online channels and provide more opportunities for many of our associates both in the field and in our corporate office.”
The transaction has been approved by boards of directors of both companies, as well as the required majority of Shepler’s stockholders, and is expected to close by the week of June 29.
With the addition of Sheplers, Boot Barn will operate 200 stores in 29 states, in addition to an e-commerce channel, including bothwww.bootbarn.com and www.sheplers.com.
Rite Aid hits the road for healthy skin
Rite Aid will be teaming with the Skin Cancer Foundation for the eighth consecutive year to provide Rite Aid customers free private screenings with a local dermatologist volunteer.
The screenings take place in a customized 38-foot RV. As the Skin Cancer Foundation’s flagship early detection program, the tour also aims to raise skin cancer awareness and educate the public about the importance of prevention and early detection.
“Offering unique health and wellness opportunities, such as skin cancer screenings, to our patients in the communities we serve is a top priority at Rite Aid,” said Dan Miller, Rite Aid SVP pharmacy operations. “Rite Aid is proud to continue its sponsorship of The Skin Cancer Foundation’s Road to Healthy Skin Tour as we work together to potentially save lives and offer valuable education on skin cancer prevention to our communities.”
“We are very thankful for Rite Aid’s continued support, which allows us to bring the Road to Healthy Skin Tour to communities for the eighth consecutive year,” commented Perry Robins, Skin Cancer Foundation president. “Since skin cancer is highly curable when diagnosed and treated early, the Tour plays a crucial role, potentially saving thousands of lives.”
New to the RV, visitors have the opportunity to learn about Receutics Active Skin Repair, a new line of over-the-counter, dermatologically tested skin care products, developed exclusively for Rite Aid.
The tour will visit Rite Aid locations in Maryland, New Jersey, Pennsylvania and Virginia.
Since 2008, the Road to Healthy Skin Tour has screened more than 20,000 people, and detected more than 8,500 suspected cancers and precancers, including more than 350 suspected melanomas. Over its seven years, the Tour has traveled more than 128,000 miles.