"Packaged food giant the Kraft Heinz Company announced on Tuesday that its board of directors has unanimously approved a plan to split into two separate, publicly traded companies. The proposed split will essentially reverse a merger between the companies from 2015, which has not provided favorable long-term results. Shares of Kraft Heinz (NYSE:KHC) were down more than 4% in early trading on Tuesday after the announcement. The stock is down 13% year to date and more than 25% over the last 12 months."
"The names of the two separate companies have yet to be decided. The first company, referred to in the news release as "Global Taste Elevation Co.," will primarily feature shelf-stable meals. It will include brands like Heinz, Kraft Mac & Cheese, and Philadelphia. The second company, referred to in the news release as "North American Grocery Co.," will feature a scaled portfolio of North American staples. It will include brands like Kraft Singles, Lunchables, and Oscar Mayer."
"A question-and-answer session is scheduled for today, Tuesday, September 2, 2025. The proposed separation is intended to be tax-free, with the transaction expected to close in the second half of 2026. According to Kraft Heinz, the split is intended to "maximize Kraft Heinz's capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities.""
Kraft Heinz's board unanimously approved a plan to split the company into two separate publicly traded entities, effectively undoing the 2015 merger. The announcement sent shares down more than 4% in early trading, leaving the stock down 13% year-to-date and over 25% in the past 12 months. One entity, described as Global Taste Elevation Co., will focus on shelf-stable meals including Heinz, Kraft Mac & Cheese, and Philadelphia. The other, described as North American Grocery Co., will hold North American staples such as Kraft Singles, Lunchables, and Oscar Mayer. The separation is intended to be tax-free and to close in the second half of 2026 to reduce complexity and better allocate resources to distinct strategic priorities.
#kraft-heinz #corporate-split-spin-off #consumer-packaged-goods #brand-portfolio #tax-free-separation
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