Kraft Heinz Announces Agreement to Sell B2B Powdered Cheese Business to Kerry Group

Rhea-AI Summary

The Kraft Heinz Company (Nasdaq: KHC) announced a definitive agreement to sell its B2B powdered cheese business to Kerry Group. This transaction, expected to close in the second half of 2022, includes the Albany, Minnesota manufacturing facility. The divestiture is part of Kraft Heinz's ongoing portfolio optimization strategy, aimed at refining its business focus. The deal will transfer employees from Kraft Heinz to Kerry Group as part of the agreement.

Positive

• Divestiture aligns with ongoing portfolio optimization strategy.
• Transaction expected to close in the second half of 2022, indicating momentum.

Negative

• Divesting B2B powdered cheese limits future revenue streams from this segment.

Transaction Expected to Close in the Second Half of 2022

PITTSBURGH & CHICAGO--(BUSINESS WIRE)-- The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today announced that it has entered into a definitive agreement to sell its B2B powdered cheese business to global food, beverage and pharma manufacturer Kerry Group. The proposed transaction is expected to close in the second half of 2022, subject to regulatory review and approval.

The transaction involves the divestiture of Kraft Heinz’s B2B powdered cheese products, which are sold through the Company’s Ingredients business. This divestiture includes the Albany, Minn., manufacturing facility, which is expected to operate in ordinary course. Employees at the Albany location will be transferred from Kraft Heinz to Kerry Group.

The divestiture of the B2B powdered cheese business reflects the Company's ongoing and active portfolio optimization.

ABOUT THE KRAFT HEINZ COMPANY

We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let's Make Life Delicious. Consumers are at the center of everything we do. With 2021 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we're dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn and Twitter.

ABOUT KERRY

Kerry is the world's leading taste and nutrition partner for the food, beverage and pharmaceutical markets. We innovate with our customers to create great tasting products, with improved nutrition and functionality, while ensuring better impact for the planet. Our leading consumer insights, global RD&A team of 1,100+ food scientists and extensive global footprint enable us to solve our customers' complex challenges with differentiated solutions. At Kerry, we are driven to be our customers' most valued partner, creating a world of sustainable nutrition, and to reach over 2 billion consumers with sustainable nutrition solutions by 2030. For more information, visit www.kerry.com.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “close,” “continue," “create,” “expect,” “have,” “help,” “intend,” “involve,” “operate,” “reflect,” “transfer,” “will,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the assets included in the proposed sale, that the sale is subject to customary closing conditions including regulatory clearances, future operation of manufacturing facilities, treatment of affected employees, the timing of closing, expected benefits of the proposed sale, impacts of the proposed sale on the Company’s business, financial results, opportunities, and future plans, and other statements that are not historical facts, each of which is based on the Company’s current beliefs, expectations, estimates, and projections. These forward-looking statements are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company’s control, which could cause actual results to differ materially from those indicated in the forward-looking statements. Those factors include, but are not limited to, the timing of or failure to obtain necessary regulatory approvals or to satisfy any other conditions of the sale, the Company’s ability to achieve intended benefits of the sale, the expected costs of the transaction, the success of business transitions, and the risk factors set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. The Company disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220817005279/en/

Alex Abraham (media)

Alex.Abraham@kraftheinz.com

Anne-Marie Megela (investors)

ir@kraftheinz.com

Source: The Kraft Heinz Company

FAQ

What is the purpose of Kraft Heinz's recent divestiture of its powdered cheese business?

The divestiture aims to optimize Kraft Heinz's business portfolio.

When is the Kraft Heinz transaction with Kerry Group expected to close?

The transaction is expected to close in the second half of 2022.

What facility is included in the Kraft Heinz sale to Kerry Group?

The Albany, Minnesota manufacturing facility is included in the sale.

How will employees be affected by the sale of Kraft Heinz's powdered cheese business?

Employees at the Albany location will be transferred to Kerry Group.

What is the stock symbol for Kraft Heinz?

The stock symbol for Kraft Heinz is KHC.