Kraft Heinz announced Wednesday that it will divest its North American coffee unit in a deal that values the business at $650 million on an enterprise basis, as it works to refocus on its core brands.

The deal with private equity firm One Rock Capital Partners includes brands such as Maxwell House and Gevalia and is expected to close in mid-2027, the company said in a news release. Kraft Heinz will retain a 30% noncontrolling equity stake in the business.

Kraft Heinz said it will use the $500 million of post-tax cash proceeds from the transaction to pay down its debts as it works to prioritize resources where it can accelerate growth.

"This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation," Steve Cahillane, CEO of Kraft Heinz, said in the release.

Cahillane joined the company in January and paused work on plans to split the company in two, a move that would have reversed the blockbuster $46 billion merger from a decade ago. He said the problems Kraft Heinz faced were "fixable and within our control."

The turnaround efforts have included a $700 million investment back into the business and a sharpened focus on some of its core brands.

Also on Wednesday, Kraft Heinz reported third-quarter earnings that beat expectations and raised its 2026 outlook. It now expects organic net sales to be down 0.5% to 1.25%, an improvement from its second-quarter report, which projected that sales could decrease as much as 2%.

"Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track," Cahillane said. "Relative to last year, our market share, sales, and volume trends are improving in every region. We are increasingly meeting consumers where they are, and giving them more reasons to choose our brands."

Shares of the company were up about 5% Wednesday morning.