Nov 4 (Reuters) – Kraft Heinz said on Wednesday it would divest its North American coffee business at an enterprise value of $650 million to One Rock Capital Partners, months after CEO Steve Cahillane put a pause on its plans to split the consumer goods maker.
Kraft Heinz’s coffee unit includes brands such as Maxwell House, Gevalia and Ethical Bean. The divestiture to private equity firm One Rock is expected to close in mid-2027, the company said.
The company will retain a 30% non-controlling equity stake in the coffee unit, Kraft Heinz said.
Kraft Heinz also reported quarterly results on Wednesday. Its net sales declined nearly 2% to $6.12 billion, but edged past estimates of $6.09 billion, according to data compiled by LSEG.
The stock was up about 3% in premarket trading.
Soon after taking the helm in January, Cahillane postponed a planned split of the company into two businesses, one focused on groceries and the other on sauces and spreads, saying Kraft Heinz’s problems were fixable, but keeping the option of a split on the table.
He has overseen a $700 million uptick in spending on marketing and innovation as the company leans aggressively into protein-heavy foods and electrolyte-infused drinks to attract health-conscious consumers.
(Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing by Joyjeet Das)
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