Kraft Heinz spills the beans: Historic coffee brands sold off in $650 million mega-deal

Kraft Heinz has agreed to sell its North American coffee business to private-equity firm One Rock Capital Partners for an enterprise value of $650 million, marking a major change for brands including Maxwell House, Gevalia and Sanka, according to a statement by the company. The transaction is expected to close in mid-2027, pending regulatory approval and other customary conditions.

Kraft Heinz will keep a 30% noncontrolling stake in the business, the announcement confirmed. The Chicago-based company expects to receive about $500 million in net cash proceeds after taxes and plans to use the money to pay down debt.

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Sale includes seven coffee brands

The deal includes Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka. According to the Chicago Business Journal, Maxwell House was founded in 1892, while Sanka became known as a leading decaffeinated coffee brand. Both were part of Kraft Foods before the 2015 merger that created Kraft Heinz.

The sale is part of Chief Executive Steve Cahillane’s strategy to focus company resources on business areas where Kraft Heinz can accelerate growth, the Chicago Business Journal confirmed. The company said the transaction is expected to improve growth and margins while helping unlock value from its portfolio.

“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, per the company’s announcement. “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.”

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Employees and plants to move

About 250 full-time employees are expected to transfer to the new business. Their roles include supply chain, sales, marketing, finance, research and development, and human resources, according to Kraft Heinz.

The transaction also includes coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia. One Rock Managing Partner Tony W. Lee said the firm plans to invest in the brands, product innovation and relationships with retail partners.

One Rock has experience completing corporate carve-outs in the food and beverage industry. Kraft Heinz said the brands, employees, and operating assets will move together as part of the transaction.

The move comes after Kraft Heinz announced its move from Nasdaq to the New York Stock Exchange this past September, which Cahillane stated would also mark a milestone in the company’s transformation.