The Kraft Heinz leadership team says the transaction reflects the company’s strategy to prioritize investments and resources toward areas of the business where Kraft Heinz can accelerate growth and deliver the best value to consumers, customers and shareholders.

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

The net cash proceeds after taxes are expected to be approximately $500 million, which will be used to pay down debt. The transaction is expected to be growth and margin accretive to Kraft Heinz.

The transaction is expected to include the assets, brands, customer support and functional resources needed to operate the North America coffee business. The company expects approximately 250 full-time employees across supply chain, sales, marketing, finance, people and performance, and R&D to transition with the business, 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,” says 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.”

One Rock has partnered successfully with global corporations on carve-out transactions. One Rock says the North America coffee business, brands and team will benefit from its relevant portfolio expertise, focused investment and operating resources.