Kraft Heinz to Divest North American Coffee Business for $650 Million
Kraft Heinz (KHC) has announced an agreement to sell its North American coffee unit, including brands such as Maxwell House and Gevalia, to private equity firm One Rock Capital Partners. The deal is valued at an enterprise value of $650 million and is expected to close in mid-2027. Kraft Heinz will retain a 30% noncontrolling equity stake in the divested business. The company plans to use approximately $500 million in post-tax cash proceeds to reduce debt and refocus resources on its core brands as part of an ongoing turnaround strategy led by CEO Steve Cahillane. This divestment follows a period of restructuring, including a $700 million reinvestment into the business. In addition to the sale announcement, Kraft Heinz reported third-quarter earnings that exceeded market expectations. The company also raised its 2026 organic net sales outlook, narrowing the projected decline to between 0.5% and 1.25%, up from previous estimates of a 2% decrease.
Tickers: $KHC
Topics: debt reduction divestiture earnings report strategic restructuring
Part of the story Kraft Heinz to Divest North American Coffee Business and Reinvest $700 Million in Core Brands (5 articles)