Kraft Heinz is to sell its North American coffee business to private equity firm One Rock Capital Partners in a deal valuing the unit at $650 million (£? million) on an enterprise basis, as the food group refocuses on its core brands.
The transaction includes Maxwell House and Gevalia and is expected to close in mid-2027. Kraft Heinz will retain a 30% non-controlling equity stake in the business.
The company said it expects to receive $500 million in post-tax cash proceeds, which will be used to reduce its debt and direct resources towards areas where it sees greater potential for growth.
Steve Cahillane, Kraft Heinz’s chief executive, said: “This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation.”
Mr Cahillane joined the group in January and subsequently abandoned plans to split Kraft Heinz into two companies, a move that would have reversed the $46 billion merger completed a decade ago. He has described the issues facing the business as “fixable and within our control”.
The turnaround has included a $700 million investment in the business and a narrower focus on selected core brands.
Kraft Heinz also reported better-than-expected third-quarter earnings and raised its outlook for 2026. It now expects organic net sales to fall by between 0.5% and 1.25%, an improvement on its previous forecast for a decline of as much as 2%.
“Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” Mr Cahillane said. “Relative to last year, our market share, sales, and volume trends are improving in every region. We are increasingly meeting consumers where they are, and giving them more reasons to choose our brands.”
Kraft Heinz shares rose by about 5% in Wednesday morning trading.
