The transaction is expected to close in the second half of 2022.
In addition to the divesture of the B2B powdered cheese portfolio, sold through the company's ingredients business, the transaction includes the sale of its Albany, Minn., manufacturing facility, which is expected to continue operating normally throughout the divestment process. Employees at the Albany location will be transferred from Kraft Heinz to Kerry Group.
The divestiture of the B2B powdered cheese business reflects the company's ongoing and active portfolio optimization.
Over the past one to two years, Kraft Heinz has divested a number of its businesses including its natural cheese business in November 2021 and its nut business in June 2021.
The stream of divestments is part of a larger turnaround story for the company, which has historically prioritized inorganic growth and aggressive cost-cutting measures in an attempt to grow its business.
Speaking at Bernstein's 38th Annual Strategic Decisions Conference in June 2022, Kraft Heinz CEO Miguel Patricio said its approach has changed drastically, "Basically, three years ago, our company... was on the bottom of the industry. It’s on the bottom in terms of morale, morale was very low, turnover was very high and it was even hard to identify areas that we could consider, excellent areas or parts of the company."
But, he added, "We’ve been working hard to get out of this bottom and I would say that today, we feel that we are good company. We are no longer at the bottom. We are a very different company."