Kraft Heinz Strikes $650M Coffee Deal With One Rock

Kraft Heinz has agreed to sell control of its North American coffee business to an affiliate of private equity firm One Rock Capital Partners in a deal that values the business at $650 million, including debt. The food company expects to use about $500 million in after-tax cash proceeds to pay down debt. Kraft Heinz will retain a 30% noncontrolling equity stake.

The sale includes Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka. It also includes coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia, as well as the customer support and other resources needed to operate the business. About 250 full-time employees are expected to transfer with the business.

“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation,” said Steve Cahillane, chief executive officer of Kraft Heinz.

One Rock plans to increase investment across the portfolio, with an emphasis on developing products, improving customer experience and strengthening relationships with retailers, said Tony W. Lee, a managing partner at the private equity firm.

The deal is part of Cahillane’s effort to turn around Kraft Heinz since he took over in January. In February, he paused the company’s planned split into two public companies, saying the business first needed to return to profitable growth.

The proposed transaction is expected to close in mid-2027.

Rothschild & Co and Centerview Partners LLC are serving as financial advisers to Kraft Heinz. McGuireWoods LLP is serving as legal adviser to Kraft Heinz. Deutsche Bank Securities Inc. and Fifth Third Securities are serving as financial advisers to One Rock. Latham & Watkins LLP is serving as legal adviser to One Rock.