Kraft Heinz has announced that it has completed the sale of certain assets in its global cheese business and the license of certain trademarks to an affiliate of Groupe Lactalis.
“The sale of our natural cheese portfolio is another milestone in our rapid transformation,” said Kraft Heinz CEO Miguel Patricio.
“The divestiture is a great example of our agile portfolio management, and we believe it will help Kraft Heinz enhance our overall growth profile, our strategic focus, and financial flexibility.”
The deal, announced in September of last year, is valued at approximately $3.3 billion and includes a cash consideration of approximately $3.2 billion.
Highlights Of The Deal
The transaction involves the divestiture of its natural, grated, cultured, and specialty cheese businesses in the US, grated cheese business in Canada, and grated, processed, and natural cheese businesses outside the US and Canada.
This divestiture includes the company's global intellectual property rights to several brands, including, among others, Cracker Barrel, Breakstone's, Knudsen, Athenos, Polly-O, and Hoffman's, as well as the Cheez Whiz brand in the majority of countries outside the US and Canada.
It also includes perpetual licenses for the Kraft and Velveeta brands that the company will grant to Groupe Lactalis for certain cheese products.
Kraft Heinz will retain its KraftSingles, Velveeta processed cheese, and Cheez Whiz processed cheese businesses in the US and Canada.
It will also retain its Kraft, Velveeta, and Cracker Barrelmacaroni and cheese, Kraft sauces, and cream cheese, including Philadelphia cream cheese, businesses worldwide.