Published on 30 Nov 2021 on Zacks via Yahoo Finance
The Kraft Heinz Company KHC is on track with agile portfolio management as part of its transformation effort. In this regard, the company concluded the sale of certain assets in the global cheese business along with the license of specific trademarks to an affiliate of Groupe Lactalis. The deal was priced at nearly $3.3 billion, which includes cash consideration of almost $3.2 billion.Per the deal, Kraft Heinz divested its natural, grated, cultured and specialty cheese businesses in the United States, grated cheese business in Canada along with grated, processed and natural cheese businesses outside the United States and Canada. The transaction also includes Kraft Heinz’s global intellectual property rights to various brands like Cracker Barrel, Breakstone’s, Knudsen, Athenos, Polly-O, Hoffman’s and Cheez Whiz brand in most of the countries outside the United States and Canada, among other names. Apart from these, the company offloaded perpetual licenses for the Kraft and Velveeta brands.Kraft Heinz will retain Kraft Singles, Velveeta processed cheese and Cheez Whiz processed cheese businesses in the United States and Canada. The company is keeping its Kraft, Velveeta and Cracker Barrel macaroni and cheese, Kraft sauces as well as cream cheese, including Philadelphia cream cheese, businesses globally.All said, the move to divest the aforementioned businesses will help Kraft Heinz enhance its overall growth profile, strategic focus and financial flexibility.
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