Paul, Weiss and Skadden have picked up lead roles in the separation of The Kraft Heinz Company just 10 years after the historic merger between the leading American food manufacturers.
The transaction sees the merged entity split back into two separate publicly traded companies through a tax-free spin-off. Each of the companies will focus on growing separate brands, with one part housing brands including Heinz, Philadelphia and Kraft Mac and Cheese, and the other including brands such as Kraft Singles and Lunchables. The new companies are yet to be named.
Kraft Heinz chair of the board Miguel Patricio said in a statement: ‘By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand.’
The Paul Weiss team was headed by a trio of partners from the firms New York office, global M&A co-head Jeffrey Marell, M&A partner Stan Richards and co-chair emeritus of the firm’s tax department Jeffrey Samuels.
Also involved were corporate partners Carmen Lu in New York and Mohammed Alvi in Los Angeles, tax partners Robert Killip in New York and Cian O’Connor in London, London-based global antitrust practice co-chair Nicole Kar, New York executive compensation partners Matthew Friestedt and Jarrett Hoffman, and global IP and technology transactions co-head Claudine Meredith-Goujon, also in New York.
Marell has worked with Kraft Heinz before, leading the team that advised the company on the 2021 sale of its natural cheese business to an affiliate of French dairy products corporation Groupe Lactalis for a total consideration of $3.3bn. Also involved in that transaction were Meredith-Goujon and Hoffman.
The firm also previously acted for Kraft Heinz in a stockholder derivative action lawsuit, winning a dismissal in July last year.
Skadden, meanwhile, fielded a team from its New York office, with M&A partners Brandon Van Dyke and Kyle Hatton leading, and support from tax partner David Rievman and banking partner Janine Jjingo.
Skadden has also previously advised Kraft Heinz, with a Germany-based team assisting the food and beverage giant on its acquisition of an 85% stake in German spice company Just Spices, which completed in January 2022.
Heinz Company and Kraft Foods Group merged in 2015 in a deal valued at $60bn, with Cravath representing Heinz, Sullivan & Cromwell representing Kraft, and Kirkland & Ellis representing 3G Capital and Heinz.
The separation is expected to be completed in the second half of 2026.
