The Kraft Heinz Company announced a plan to separate into two independent, publicly traded companies.
The separation aims to maximize capabilities and brands while reducing complexity.
The two resulting companies will focus on distinct strategic priorities for stronger performance.
Creation of Two Companies
Transaction to create two scaled public companies with leading capabilities and attractive financial profiles.
Management Target
Maintaining investment-grade ratings for both companies through targeted capital structures.
Executive Leadership
Miguel Patricio, current Chair of the Board, to serve as Executive Chair of the Board during the separation.
Brand Portfolio
Global Taste Elevation Co. to focus on global Taste Elevation, while North American Grocery Co. will cater to North America staples.
Operational Focus
Separation to provide greater strategic and operational focus for each company to accelerate performance.
- The separation aims to reduce operational complexity and drive industry-leading margins.
- Customized capital allocation based on strategic ambition expected to accelerate performance and retain financial flexibility.
The decision to separate into two companies is expected to help unlock the potential of each brand and drive better performance, creating long-term shareholder value.