Why Kraft Heinz Is Selling Multiple Cheese Brands for $3.2 Billion

Just hours after announcing a new, upbeat outlook and active strategic plan, Kraft Heinz (NASDAQ: KHC) made public a $3.2 billion deal to sell off many of its major cheese brands to Groupe Lactalis. The move is apparently part of Kraft Heinz's strategic streamlining of its business, with CEO Miguel Patricio saying in a statement the sale "is a great example of agile portfolio management at work."

The $3.2 billion Groupe Lactalis is forking over to acquire the food giant's "Natural, Grated, Cultured and Specialty cheese businesses" is nearly double the $1.8 billion the cheese brands added to Kraft Heinz's coffers over the past 12 months, according to the press release. The brands involved include the international branch of Cheez Whiz, along with the American branches of Cracker Barrel, Polly-O, Hoffman's, Athenos, Knudsen, and Breakstone's. There will also be a perpetual license for international production of Velveeta cheese.

Image source: Getty Images.

Continue reading

Source Fool.com