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Kraft Heinz announced Wednesday that it will sell its North American coffee division in a deal that values the business at $650 million on an enterprise basis to refocus on its core brands.
The deal with private equity firm One Rock Capital Partners includes brands such as Maxwell House and Gevalia and is expected to close in mid-2027, the company said in a news release. Kraft Heinz will retain a 30% non-controlling interest in the business.
Kraft Heinz said it will use the after-tax cash proceeds of $500 million from the transaction to pay down debt and work to prioritize resources that can accelerate growth.
“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate our transformational momentum,” Kraft Heinz CEO Steve Cahillane said in a release.
Mr. Kaylane joined the company in January, pausing work on a plan to split the company in two, a move that reversed a blockbuster $46 billion merger a decade earlier. He said the problems faced by Kraft Heinz were “fixable and within our control.”
The turnaround effort includes putting a $700 million investment back into the business and focusing on certain core brands.
Also on Wednesday, Kraft Heinz reported better-than-expected third-quarter profits and raised its 2026 outlook. The company now expects organic net sales to decline 0.5% to 1.25%, an improvement from its second-quarter report in which it predicted sales could decline by up to 2%.
“We are on track with our 2026 business plan to rebuild our U.S. business and accelerate international growth,” Cahillane said. “Compared to last year, our market share, sales and volume trends are improving in all regions. We are meeting more and more consumers where they are and giving them even more reasons to choose our brand.”
The company’s stock price rose about 5% Wednesday morning.
