The Kraft Heinz Company has entered into an agreement to sell its B2B powdered cheese business to taste and nutrition firm Kerry Group.
The proposed transaction, subject to regulatory review and approval, is expected to close in the second half of 2022.
The deal includes Kraft Heinz’s B2B powdered cheese products, which are sold through its ingredients business and the Albany, Minnesota, based manufacturing facility.
The facility is expected to operate in the ordinary course, Kraft Heinz noted, and added that employees at the site will be transferred from Kraft Heinz to Kerry Group.
The divestiture of the B2B powdered cheese business is part of the company's ongoing portfolio optimisation process.
The company completed the acquisition of a majority stake in Brazil’s Companhia Hemmer Indústria e Comércio (Hemmer) – a manufacturer of condiments and sauces – in April 2022.
The food group has also announced a collaboration with food tech start-up TheNotCompany (NotCo) as it seeks to reimagine global food production and advance towards a more sustainable future.
In July of this year, Kraft Heinz Co raised its forecast for annual organic sales growth and beat quarterly estimates, helped by higher prices for the Heinz ketchup maker's packaged meals and condiments.
Elsewhere, Kerry Group reported year-on-year revenue growth of 13.3% to €4.1 billion in the first half of its financial year, with EBITDA growth of 13.1% to €518 million, while EBITDA margin stood at 12.8%.