Pittsburgh-based food processing giant H. J. Heinz Co. has entered into a merger agreement to be acquired by Berkshire Hathaway and 3G Capital in a transaction valued at $28 billion, the largest ever in the food & beverage industry.

Under the terms of the agreement, Heinz shareholders will receive $72.50 in cash for each share of common stock they own.

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“Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products," said Warren Buffett, chairman and CEO of Berkshire Hathaway. "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.”

Berkshire Hathaway and 3G Capital have agreed to maintain Pittsburgh as the company's global headquarters and to fulfill and continue its philanthropic support of community initiatives and related investments.