Kraft Heinz to split into two public companies by second half 2026

The Kraft Heinz Company (NASDAQ: KHC) announced that its board unanimously approved a plan to separate into two independent public companies through a tax-free spin-off expected to close in the second half of 2026.

The separation will create "Global Taste Elevation Co." with approximately $15.4 billion in 2024 net sales and $4.0 billion in adjusted EBITDA, focusing on sauces, spreads and seasonings with brands including Heinz, Philadelphia and Kraft Mac & Cheese. The second company, "North American Grocery Co.," will have approximately $10.4 billion in 2024 net sales and $2.3 billion in adjusted EBITDA, featuring brands such as Oscar Mayer, Kraft Singles and Lunchables.

Carlos Abrams-Rivera will continue as CEO of Kraft Heinz and become CEO of the North American grocery company upon separation completion. The board is working with an executive search firm to identify a CEO for the global taste elevation company. Miguel Patricio, current board chair, will serve as executive chair.

The company expects up to $300 million in dis-synergies from the separation but anticipates opportunities to mitigate a substantial portion. Management targets maintaining investment-grade ratings for both companies and preserving the current aggregate dividend level.

John Cahill, vice chair of the board, will lead a separation committee to oversee the transaction. The separation requires final board approval, tax opinion confirmation, and SEC filing effectiveness.

Kraft Heinz reported 2024 net sales of approximately $26 billion. The company stated the separation aims to reduce operational complexity and allow more focused resource allocation for each business portfolio.

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