Kraft Heinz to Sell North American Coffee Business for $650M

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, retaining a 30% non-controlling stake in the business. The portfolio being divested 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 roughly $500 million in net cash proceeds after taxes, which it plans to use to reduce debt. About 250 full-time employees across supply chain, sales, marketing, finance, people and performance, and R&D are expected to move with the business, along with coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia. "This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation," said Kraft Heinz chief executive Steve Cahillane. "Our continued stake reflects the confidence we have in their long-term potential under One Rock's focused ownership." Tony W Lee, managing partner at One Rock, said the firm intends "to accelerate investment across the brand portfolio to drive growth and innovation." The transaction is expected to close in mid-2027, subject to regulatory approval and customary closing conditions. For office coffee service operators and vending distributors, the brands involved are staples of workplace coffee programs and single-serve equipment. A change in ownership of Maxwell House, Gevalia and the Tassimo system means new ownership across a supply chain many operators buy into directly, and a possible shift in promotional and channel strategy once the deal closes. Source: Refreshment (FoodBev Media) — https://www.refreshmentmag.com/post/kraft-heinz-to-sell-north-american-coffee-business-for-650m