06:30 AM EDT, 09/02/2025 (MT Newswires) -- Kraft Heinz ( KHC ) said Tuesday its board has approved a plan to separate itself into two independent, publicly traded companies through a tax-free spin-off.

The companies, whose names will be determined at a later date, will be Global Taste Elevation and North American Grocery.

Global Taste Elevation had net sales of about $15.40 billion in 2024 net sales about $4 billion in 2024 adjusted EBITDA. This company will hold various brands, including Heinz, Philadelphia and Kraft Mac & Cheese.

Meanwhile, North American Grocery had about $10.40 billion in 2024 net sales and about $2.30 billion in 2024 adjusted EBITDA. This company will hold brands, such as Oscar Mayer, Kraft Singles and Lunchables.

Carlos Abrams-Rivera, who is currently CEO of Kraft Heinz ( KHC ), will become CEO of North American Grocery upon completion of the separation. The board is working with an executive search firm to identify potential CEO candidates for Global Taste Elevation. Miguel Patricio, the current chair of the board, will become executive chair.

The spin-off is designed to maximize its capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities, the company said.

Kraft said it expects up to $300 million of dis-synergies, with "clear opportunities" to mitigate a substantial portion in the near term.

The company expects the spin-off to close in H2 2026.