The Kraft Heinz Co. has entered into a definitive agreement to acquire Primal Nutrition, L.L.C., the maker of Primal Kitchen branded products, for approximately $200 million. Founded in 2015 by Mark Sisson and Morgan Buehler, Primal Kitchen offers a range of better-for-you condiments, sauces, dressings and snacks. The business is expected to generate approximately $50 million in net sales this year.
“The proposed partnership with Primal Kitchen is consistent with Kraft Heinz’s vision to be the best food company, growing a better world,” said Paulo Basilio, U.S. Zone president for Kraft Heinz. “The Primal Kitchen team has built an amazing portfolio of the world’s best-tasting, health-enhancing, real-food pantry staples. Primal Kitchen is an authentic, premium and growing brand that fits perfectly with our core condiments and sauces categories, and we are excited to partner with the company’s strong existing team to drive growth across multiple categories going forward.”
The transaction remains subject to customary closing conditions and is expected to close in early 2019. Primal Kitchen will continue to operate under its current leadership team at its headquarters in Oxnard, Calif., while benefitting from Kraft Heinz’s assets and infrastructure.
“While our growth to date has exceeded all industry standards and expectations, our partnership with an industry leader like Kraft Heinz now offers an unrivaled opportunity to reach millions more of the consumers who have been seeking products like ours for years,” Mr. Sisson said. “Based on the significant time I’ve spent with the Kraft Heinz team, we share a common vision regarding the future of food and the importance of consumer choices. I look forward to working with them to grow this amazing brand.”
Primal Kitchen will join the company under its Springboard platform. Kraft Heinz announced the launch of Springboard in March as a platform “dedicated to nurturing, scaling and accelerating growth of disruptive U.S. brands within the food and beverage space.” Kraft Heinz seeks to partner with natural and organic, specialty and craft, health and performance and experiential brands.
By Monica Watrous
Source: Food Business News
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