Kraft Heinz sells Maxwell House and Gevalia to private equity firm

Kraft Heinz is selling its North American coffee division for $650 million in an enterprise value deal. The buyer is One Rock Capital Partners, a private equity firm. The transaction includes well-known brands like Maxwell House and Gevalia. The company expects the sale to close by mid-2027.

Under the agreement, Kraft Heinz will keep a 30% noncontrolling equity stake in the business. The company will use $500 million of the post-tax cash proceeds to pay down existing debt. This move is part of a strategy to refocus resources on core brands where growth can be accelerated.

Steve Cahillane, who became CEO in January, described the sale as a meaningful step in unlocking portfolio value. He stated that the transaction will accelerate the momentum behind the company's transformation. Cahillane previously canceled plans to split the company in two, a move that would have reversed the 2015 merger.

The turnaround strategy under Cahillane has included a $700 million investment back into the business. He has emphasized that the problems the company faces are fixable and within its control. The new leadership is prioritizing a sharpened focus on specific core brands to drive performance.

On the same day, Kraft Heinz reported third-quarter earnings that exceeded expectations. The company also raised its 2026 outlook. It now projects organic net sales will decline between 0.5% and 1.25%, an improvement from the previous estimate that allowed for a 2% drop.

Cahillane said the operating plan to turn around the U.S. business is on track. He noted that market share, sales, and volume trends are improving in every region relative to last year. Kraft Heinz shares rose about 5% on Wednesday morning.