Prime Highlights-
- Kraft Heinz agrees to sell its North American coffee business to One Rock Capital Partners for an enterprise value of $650 million.
- Kraft Heinz keeps a 30% non-controlling stake and expects about $500 million in net cash proceeds to reduce debt.
Key Facts-
- The sale covers Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands.
- About 250 employees and plants in Jacksonville and Vancouver will move to the coffee business.
Background-
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. The company will keep a 30% non-controlling stake in the business.
The sale covers the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands. It also includes coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia. About 250 full-time employees across supply chain, sales, marketing, finance, people and performance, and research and development will move to the business.
The deal fits Kraft Heinz’s plan to put its investment into areas with greater opportunities for growth and value creation. The company expects about $500 million in net cash proceeds after taxes and plans to use the money to reduce debt. It also expects the transaction to add to its growth and margins.
Steve Cahillane, CEO of Kraft Heinz, said the sale is a meaningful step in unlocking value from the portfolio. He said the company’s continued stake shows its confidence in the brands’ long-term potential under One Rock’s focused ownership.
Tony W. Lee, managing partner of One Rock, said the brands have been household staples for more than 100 years. He said One Rock plans to speed up investment across the portfolio to drive growth and innovation, improve the consumer experience and strengthen ties with retail partners.
The transaction should close in mid-2027, subject to regulatory approval and customary closing conditions.
