LONDON (ShareCast) - (Sharecast News) - Kraft Heinz announced on Tuesday that it plans to split into two "scaled, focused companies" as it looks to "accelerate profitable growth and unlock shareholder value".
The names of the two companies will be determined at a later date, but the first will include brands such as Heinz, Philadelphia and Kraft Mac & Cheese, with approximately 75% of net sales coming from sauces, spreads and seasonings.

The second company, which will be led by Carlos Abrams-Rivera, will include brands such as Oscar Mayer, Kraft Singles and Lunchables.

Kraft Heinz said the companies are expected to have ample discretionary cash flow to invest in organic growth, return capital to shareholders and consider strategic transactions.

Miguel Patricio, executive chair of the board for Kraft Heinz, said: "Kraft Heinz's brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritise initiatives and drive scale in our most promising areas.

"By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value. I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organization for the separation."

The split comes 10 years after Kraft Foods and H.J. Heinz merged in a $45bn deal.

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