Kraft Heinz to Sell North American Coffee Business to One Rock Capital for 0 Million

Kraft Heinz to Sell North American Coffee Business to One Rock Capital for $650 Million

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JACKSONVILLE, Fla. — In a deal that will reshape the future of American coffee manufacturing, Kraft Heinz has agreed to sell its North American coffee business to an affiliate of One Rock Capital Partners for an enterprise value of $650 million, News4JAX reported. The agreement, announced Tuesday, transfers control of the Maxwell House brand — and its last remaining U.S. plant in downtown Jacksonville — to the private equity firm, though Kraft Heinz will retain a 30% equity stake in the newly formed entity.

The Maxwell House plant at 735 E. Bay St., which began operations in 1924, will pass to One Rock along with approximately 250 employees across the coffee division. Kraft Heinz expects to pocket roughly $500 million in net cash proceeds after taxes, funds it plans to direct toward paying down corporate debt while sharpening focus on higher-growth segments of its food portfolio.

The Last Plant Standing in Jacksonville

In 1990, when Maxwell House announced plans to close one of its two East Coast facilities, city business and political leaders mobilized a “Keep Max in Jax” campaign to demonstrate the community’s commitment to manufacturing jobs, the Jax Daily Record reported. Maxwell House ultimately closed its Hoboken, New Jersey plant instead, keeping the Jacksonville operation alive. The company later sold its Houston plant in 2006 and shuttered its San Leandro, California facility in 2017, leaving the Bay Street location as the sole remaining U.S. production site for the brand.

In January, Maxwell House demolished a building constructed in 1926 at the 735 E. Bay St. complex, according to the Jax Daily Record.

Seven Brands and a Vancouver Facility Change Hands

One Rock will acquire Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka, alongside manufacturing facilities in both Jacksonville and Vancouver, British Columbia. Despite the impending sale, these brands showed solid momentum earlier this year, with coffee sales across the portfolio rising 6.5% in the first six months of 2026 to reach $457 million, the Jax Daily Record noted.

Kraft Heinz framed the divestiture as a strategic move to unlock value and concentrate investment on areas where it can accelerate growth and improve margins. CEO Steve Cahillane emphasized that the company’s retained 30% stake signals confidence in the brands’ future under new ownership.

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Photo: kraftheinz.com

“We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock’s focused ownership,” Cahillane said.

One Rock Managing Partner Tony W. Lee outlined plans to pour capital into the portfolio to spur innovation.

“We have long admired Kraft Heinz’s iconic coffee brands, such as Maxwell House and Gevalia, which have been household staples for more than 100 years,” Lee said. “We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners.”

From 2019 Rumors to a $650 Million Agreement

Now, with One Rock offering $650 million for the business and Kraft Heinz retaining a 30% stake, the Pittsburgh-based company plans to use the proceeds to pay down debt while maintaining confidence in the brands’ long-term potential.

Mid-2027 Closing Pending Regulatory Review

The deal is not yet final. The transaction is expected to close in mid-2027, pending regulatory approval and other customary conditions. Until then, the approximately 250 employees in the coffee business will transfer with the sale, though Kraft Heinz’s media relations department did not immediately respond to inquiries about the specific number of workers at the Jacksonville plant, the Jax Daily Record reported.

As One Rock prepares to take control next year, the century-old plant faces its biggest ownership transition since the 1990s, when Jacksonville fought to keep it open.

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