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Kraft Heinz has agreed to sell its North American coffee business to an affiliate of private equity firm One Rock Capital Partners for an enterprise value of $650 million, while retaining a 30% non-controlling stake in the business.
The proposed divestment includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands.
The deal forms part of Kraft Heinz’s strategy to prioritise investment in areas where it sees greater opportunities for growth and value creation.
The company expects to receive approximately $500 million in net cash proceeds after taxes, which it plans to use to reduce debt. The transaction is also expected to be accretive to Kraft Heinz’s growth and margins.
As part of the agreement, the North American coffee business will transfer with the assets, brands and operational resources required to continue its operations. Approximately 250 full-time employees across supply chain, sales, marketing, finance, people and performance, and R&D are expected to move to the business.
The transaction will also include coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia.
Steve Cahillane, CEO of Kraft Heinz, said: “This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation. We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock's focused ownership.”
Tony W Lee, managing partner of One Rock, added: "“We have long admired Kraft Heinz’s iconic coffee brands, such as Maxwell House and Gevalia, which have been household staples for more than 100 years. We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners.”
The transaction is expected to close in mid-2027, subject to regulatory approval and customary closing conditions.
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