Kraft Heinz announced Thursday it will sell its North American coffee business—Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean, and Sanka—to One Rock Capital Partners for $650 million, keeping a 30% stake and using roughly $500 million in proceeds to pay down debt, with closing expected mid-2027.
One Rock Capital Partners Takes Seven Coffee Brands
The company said the definitive agreement transfers seven distinct coffee brands along with the assets, customer support, and functional resources needed to operate the business. Approximately 250 full-time employees across supply chain, sales, marketing, finance, people and performance, and R&D will transition to the new entity, alongside manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia.
One Rock Capital Partners, described by Kraft Heinz as a value-oriented, operationally focused private equity firm, will take controlling ownership. The firm employs a rigorous approach using highly experienced Operating Partners to identify, acquire, and enhance businesses, a model it has applied in carve-out transactions with a range of leading global corporations.
Kraft Heinz has agreed to sell its North American coffee brands, including Maxwell House, Sanka and Gevalia, to One Rock Capital Partners for $650 million. Kraft Heinz will keep a 30% stake. https://t.co/QoMX5siGsI
Why Kraft Heinz Keeps a 30% Stake in Maxwell House
Rather than exiting the coffee category entirely, Kraft Heinz will hold a 30% non-controlling equity position. CEO Steve Cahillane said the transaction represents “a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation.”
“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.” Steve Cahillane
The retained stake allows Kraft Heinz to participate in future value creation while freeing management bandwidth for core portfolio brands including Heinz, Kraft, Philadelphia, Primal Kitchen, and Lunchables. The company, which reported approximately $25 billion in net sales in 2025 across more than 40 countries, expects the transaction to be both growth and margin accretive to its remaining operations.
Kraft Heinz Plans to Use Proceeds for Debt Reduction
The financial architecture of the deal reveals a clear priority: Kraft Heinz expects net cash proceeds after taxes of approximately $500 million, which are planned specifically for debt reduction.
| Transaction Detail | Specific Figure or Term |
|---|---|
| Enterprise Value | $650 million |
| Kraft Heinz Retained Interest | 30% non-controlling equity stake |
| Expected Net Cash Proceeds | Approximately $500 million after taxes |
| Designated Use of Proceeds | Debt paydown |
| Expected Closing Date | Mid-2027, subject to regulatory approval |
| Workforce Transitioning | Approximately 250 full-time employees |
The physical assets show the cross-border dimensions of the business. The Jacksonville, Florida, and Vancouver, British Columbia, coffee manufacturing facilities are included in the North America coffee business being divested to One Rock.
Advisers, Regulators, and the Road to Mid-2027
Rothschild & Co and Centerview Partners LLC are serving as financial advisers to Kraft Heinz, with McGuireWoods LLP providing legal counsel. One Rock is advised by Deutsche Bank Securities Inc. and Fifth Third Securities financially, and Latham & Watkins LLP legally. The proposed transaction remains subject to regulatory approval and other customary closing conditions before it can finalize in mid-2027.
The expected mid-2027 closing encompasses the transition of approximately 250 full-time employees and the Jacksonville and Vancouver facilities to One Rock.
