USA | The Kraft Heinz Company has announced that it has entered into a definitive agreement with an affiliate of One Rock Capital Partners to divest its North America coffee business at an enterprise value of USD 650 million.
Kraft Heinz will retain a 30 percent non-controlling equity stake in the Business. One Rock is a value-oriented, operationally focused private equity firm with in-depth experience in the food and beverage sector.
The proposed transaction, which includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, and Sanka brands, is expected to close in mid-2027, subject to regulatory approval and other customary closing conditions.
The Kraft Heinz leadership team and Board of Directors determined that the strategic rationale behind the transaction is compelling, as it reflects the Company’s strategy to prioritise investments and resources toward areas of the business where Kraft Heinz can accelerate growth and deliver the best value to consumers, customers, and shareholders.
“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation,” said Steve Cahillane, CEO of Kraft Heinz.
“We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock's focused ownership.”
The net cash proceeds after taxes are expected to be approximately USD 500 million, which are planned to be used to pay down debt. The transaction is expected to be accretive to Kraft Heinz's growth and margins.
The transaction is expected to include the assets, brands, customer support, and functional resources needed to operate the North America coffee business.
The Company expects approximately 250 full-time employees across Supply Chain, Sales, Marketing, Finance, People & Performance, and R&D to transition with the Business, along with its coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia.
“We have long admired Kraft Heinz’s iconic coffee brands, such as Maxwell House and Gevalia, which have been household staples for more than 100 years,” said Tony W. Lee, Managing Partner of One Rock.
“We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners.”
One Rock has partnered successfully with a range of leading global corporations on carve-out transactions. The North America coffee business, brands, and team will benefit from One Rock’s relevant portfolio expertise, focused investment, and operating resources.
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