Kraft Heinz sells its North American coffee business in $650 million deal
Kraft Heinz just sold its North American coffee unit for $650 million.
The short version
- The massive deal includes household names like Maxwell House and Gevalia.
- One Rock Capital Partners, a private equity investment firm, is buying the brands.
- Kraft Heinz will keep a 30 percent stake in the business.
Check your pantry shelves. Kraft Heinz, the massive food and beverage company, just agreed to sell its entire North American coffee business in a deal valuing the unit at $650 million, according to CNBC. The huge move hands brands like Maxwell House and Gevalia over to One Rock Capital Partners, a private equity investment firm.
Kraft Heinz plans to use $500 million in post-tax cash proceeds from the sale to pay down its heavy debts. At the same time, the company will keep a 30 percent noncontrolling equity stake in the coffee business. "This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation," Steve Cahillane, CEO of Kraft Heinz, said in the news release.
Cahillane took the top job in January and quickly scrapped plans to split the giant food maker into two separate companies. That reversal halted a potential breakup of the company, which was originally formed a decade ago in a blockbuster $46 billion merger.
He insisted that the challenges facing Kraft Heinz were fixable and completely within management's control. The turnaround strategy has already involved pouring a $700 million investment back into core operations. Meanwhile, Kraft Heinz also reported third-quarter earnings that beat Wall Street expectations and raised its full-year 2026 outlook.
For a grocery store owner or a busy family stocking up on morning coffee, the massive restructuring means the brands you buy on the shelf are shifting hands as management races to fix the bottom line.
