Private equity firm One Rock Capital Partners will acquire Kraft Heinz’s North American coffee division for a total enterprise value of $650 million, though the company will keep a 30% minority interest in the venture.
The proposed divestment includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, and Sanka brands.
Kraft Heinz’s strategy is to prioritize investment in areas where it sees greater opportunities for growth and value creation, and this deal forms part of that strategy.
The company anticipates netting around $500 million in cash after taxes from the deal, which it intends to allocate toward debt reduction.
Under the terms of the deal, the North American coffee division, along with its necessary assets, brands, and operational infrastructure, will be transferred to ensure uninterrupted operations.
According to Steve Cahillane, Kraft Heinz’s CEO, the transaction represents a significant move in maximizing the value of their portfolio and will further propel their ongoing transformation efforts.
Tony W Lee, managing partner of One Rock, added: “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.”
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Completion of the deal is anticipated for mid-2027, pending regulatory clearance and standard closing requirements.
Around 250 full-time staff members from various departments, including supply chain, sales, marketing, finance, human resources, and R&D, are expected to transition to the new business.
The transaction will also include coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia.
Kraft Heinz will use the proceeds from the sale to reduce its debt, which is a key part of its financial strategy.
The deal is subject to regulatory approval, and once approved, it is expected to close in mid-2027.
Upon completion of the transaction, the North American coffee business will be operated by One Rock Capital Partners, with Kraft Heinz holding a 30% non-controlling stake.
