Chicago, IL–Kraft Heinz has agreed to purchase Primal Kitchen for around $200 million, according to Bloomberg News.
Primal Kitchen is expected to generate about $50 million this year. It focuses primarily on condiments, sauces, and dressings, with growing product lines in healthy snacks. All of its products are in line with the paleo diet.
Primal Kitchen will gain access to Kraft Heinz’s assets and infrastructure, according to the Associated Press, while still operating as an autonomous company, led by its current leadership team in its current headquarters.
Paulo Basilio, U.S. zone president for Kraft Heinz, said, “The proposed partnership with Primal Kitchen is consistent with Kraft Heinz’s vision to be the best food company, growing a better world. 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.”
Mark Sisson, co-founder of Primal Kitchen, said, “My mission has always been to change the way the world eats. 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. Kraft Heinz and I 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.”
The transaction is expected to be completed in early 2019. Terms of the agreement were not disclosed.
The Kraft Heinz Company is the fifth-largest food and beverage company in the world. Their brands include Kraft, Heinz, Kool-Aid, Lunchables, Ore-Ida, Planters, and Smart Ones.
Primal Kitchen creates products that are free of dairy, gluten, grains, and soy, and emphasize beneficial fats and high-quality proteins.