The Kraft Heinz Company today announced that it will unload its North American coffee unit in a deal that estimates the business at an enterprise value of USD $650 million, as it works to refocus on its core brands. The sale to private equity firm One Rock Capital Partners includes Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, and Sanka brands.

“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation,” said Steve Cahillane, CEO of Kraft Heinz in a statement. “We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock’s focused ownership.”

Cahillane joined Kraft Heinz in January and paused work on plans to split the company in two – noting the problems were fixable – a move that would have reversed the $46 billion merger from a decade ago.

Kraft Heinz said it will use the $500 million of post-tax cash proceeds from the transaction to pay down its debts as it works to prioritize resources where it can accelerate growth.

The transaction is expected to include the assets, brands, customer support, and functional resources needed to operate the North America coffee business. Kraft Heinz expects approximately 250 full-time employees across supply chain, sales, marketing, finance, people and performance, and R&D to transition with the coffee division, along with its coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia.

“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,” said Tony W Lee, managing partner of One Rock. “We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners.”

On Wednesday, Kraft Heinz also reported third-quarter earnings that beat expectations and raised its 2026 outlook. It now expects organic net sales to be down 0.5% to 1.25%, an improvement from its second-quarter report, which projected that sales could decrease by almost 2%.

The divestiture is expected to close in mid-2027, subject to regulatory approval and other customary closing conditions, according to the company. Kraft Heinz will retain a 30% noncontrolling equity stake in the business. — Vanessa L Facenda