On Wednesday, the Kraft Heinz Company (KHC) reported Q3 net income of $544 million. The Pittsburgh-based processed food company, with dual headquarters in Pittsburgh and Chicago, posted revenue of $6.12 billion for the period, exceeding forecasts.
Despite the optimistic outlook, KHC today announced a definitive agreement to divest its North America coffee business to an affiliate of One Rock Capital Partners at an enterprise value of $650 million. KHC will retain a 30% non-controlling equity stake.
The proposed deal includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands. It is expected to close in mid-2027, subject to regulatory approval and other customary closing conditions.
One Rock is a private equity firm with experience in the food and beverage sector. The company's portfolio includes retail bread maker Lewis Brothers Bakeries, foodservice pizza maker OLM Food Solutions and Primo Brands, the company behind Poland Spring, Pure Life and other North American water brands.
KHC leadership said the deal will help prioritize investments and resources toward areas of the business where it can accelerate growth.
Net cash proceeds after taxes are expected to be about $500 million, which the company plans to use to pay down debt.
The transaction is expected to include some 250 full-time employees across supply chain, sales, marketing, finance and R&D, as well as coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia.
