Struggling Kraft Heinz sells dairy brands in $3.2B deal, which includes Wausau facility
Kraft Heinz says it is selling its natural cheese business — including its Cracker Barrel brand — to French dairy company Lactalis Group as part of a larger restructuring.
The $3.2 billion sale includes Kraft Heinz production facilities in Tulare, California; Walton, New York; and Wausau, Wisconsin.
Kraft Heinz will retain the Philadelphia cream cheese brand, Kraft singles and the Velveeta and Cheez Whiz brands.
Included in the sale are Kraft Heinz’s natural, grated, cultured and specialty cheese businesses in the U.S., its grated cheese business in Canada and its entire international cheese business.
Kraft Heinz already sold its natural cheese business in Canada last year for $1.2 billion.
The company has been struggling as consumers seek out fresh, less processed food. It says the sale will help it focus its resources on other brands.
The sale is expected to close in the first half of next year.
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