Kraft Heinz to divest its North American coffee business in $650 million deal

Summary

• Kraft Heinz announced the divestiture of its North American coffee unit to private equity firm One Rock Capital Partners for $650 million on an enterprise basis.
• The transaction includes brands such as Maxwell House & Gevalia & 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 $500 million of post-tax cash proceeds from the deal to pay down debt.
• CEO Steve Cahillane joined the company in January & paused plans to split the business into two separate entities.
• Turnaround efforts include a $700 million investment back into the business & a sharpened focus on core brands.
• Kraft Heinz reported third-quarter earnings that beat expectations & raised its 2026 outlook.
• The company now expects 2026 organic net sales to decrease by 0.5% to 1.25%, an improvement from the previous projection of a 2% decrease.
• Cahillane stated that market share, sales, & volume trends are improving in every region relative to last year.
• Shares of the company rose approximately 5% on Wednesday morning.