The Kraft Heinz Company, based in Pittsburgh, sold off certain assets and trademarks in its global cheese business to an affiliate of Groupe Lactalis, which is based in France, for approximately $3.3 billion.
The sale involves the divestiture of Kraft Heinz’s natural, grated, cultured, and specialty cheese businesses in the United States, its grated cheese business in Canada, and its grated, processed, and natural cheese businesses outside the United States and Canada.
“The sale of our natural cheese portfolio is another milestone in our rapid transformation,” Kraft Heinz CEO Miguel Patricio said. “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.”
Further, the divestiture includes its 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 United States and Canada.
In addition, the transaction includes perpetual licenses for the Kraft and Velveeta brands that Kraft Heinz 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 United States and Canada. It will also keep its Kraft, Velveeta, and Cracker Barrel macaroni and cheese, Kraft sauces, and cream cheese, including Philadelphia cream cheese, businesses.