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Kraft-Heinz announced Wednesday that it will spin off its North American coffee unit in a deal that values the company at $650 million on an enterprise basis, as it works to refocus on its core brands.
The deal with private equity firm One Rock Capital Partners includes brands such as Maxwell House and Gevalia and is expected to close in mid-2027, the company said in a press release. Kraft Heinz will retain a 30% non-controlling interest in the company.
Kraft Heinz said it would use the $500 million in after-tax cash proceeds from the deal to pay down debt, while working to prioritize resources where it can accelerate growth.
“This transaction is a significant step in unlocking the value of our portfolio and will further accelerate the momentum of our transformation,” Kraft Heinz CEO Steve Cahillane said in the release.
Cahillane joined the company in January and suspended work on a plan to split the company in two, a move that would have reversed the blockbuster $46 billion merger of a decade ago. He said the problems Kraft Heinz faced were “fixable and within our control.”
Turnaround efforts have included a $700 million investment in the company and an increased focus on some of its core brands.
Also on Wednesday, Kraft Heinz reported better-than-expected third-quarter results and raised its outlook for 2026. The company now expects organic net sales to decline between 0.5% and 1.25%, an improvement from its second-quarter report, which forecast a sales decline of up to 2%.
“Our 2026 operational plan to turn around the U.S. business and accelerate international growth is on track,” Cahillane said. “Compared to last year, our market share, sales and volume trends are improving in every region. We are increasingly meeting consumers where they are and giving them more reasons to choose our brands.
The company’s shares were up about 5% Wednesday morning.
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