Kraft Heinz divests North American coffee business for $650m

Summarised from 2 outlets · Updated 4 Nov, 21:15 · Archive

Kraft Heinz is selling its North American coffee business, including Maxwell House and Gevalia, to private equity firm One Rock Capital Partners for $650 million.

Kraft Heinz announced the sale of its North American coffee business to One Rock Capital Partners in a deal valued at $650 million on an enterprise basis. The transaction includes seven coffee brands: Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka. The deal is expected to close in mid-2027, and Kraft Heinz will retain a 30 per cent non-controlling equity stake in the business.

About 250 full-time employees are expected to transition with the business, along with manufacturing facilities in Jacksonville, Florida and Vancouver, British Columbia. Kraft Heinz will receive approximately $500 million in post-tax cash proceeds, which the company plans to use to pay down debt and prioritise resources to accelerate growth.

CEO Steve Cahillane said the transaction is 'a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation'. Tony W. Lee, managing partner of One Rock, stated that the firm intends to 'accelerate investment across the brand portfolio to drive growth and innovation'. Shares of Kraft Heinz rose about 5 per cent on Wednesday morning following the announcement.

How it is being reported

• Kraft Heinz sells off coffee part of businessThe Kraft Heinz Company is divesting its North American coffee business for $650 million, the company announced Wednesday.UPI · 4 Nov, 21:01
• Kraft Heinz to divest its North American coffee business in $650 million dealKraft Heinz will divest its North American coffee business to private equity firm One Rock Capital Partners as CEO Steve Cahillane works to revive the company.CNBC · 4 Nov, 15:35

In this story: Kraft Heinz · One Rock Capital Partners · Maxwell House · Gevalia · Steve Cahillane · Jacksonville · Vancouver

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