Kraft Heinz agrees to acquire Primal Kitchen for $200m

The Kraft Heinz has signed a definitive agreement to acquire US-based condiments and sauce producer Primal Nutrition for approximately $200m.

Established by Mark Sisson and Morgan Buehler, Primal Nutrition offers mayonnaise, salad dressings and avocado oil under the Primal Kitchen brand.

Kraft Heinz US Zone president Paulo Basilio said: “The proposed partnership with Primal Kitchen is consistent with Kraft Heinz’s vision to be the best food company, growing a better world. 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.”

As per the terms of the agreement, Primal Kitchen will be part of Springboard, which is Kraft Heinz’s platform created to partner with disrupting food brands.

Primal Kitchen will continue to operate as an independent business entity but will leverage Kraft Heinz’s assets and infrastructure. Its headquarters will remain in Oxnard, California, and will be led by the existing leadership team.

The completion of the transaction is subject to customary closing conditions, which is expected to take place early next year.

Primal Kitchen co-founder Mark Sisson said: “My mission has always been to change the way the world eats. With that goal in mind, Primal Kitchen launched in 2015 to offer health-conscious consumers the best possible choices in condiments, sauces, dressings and healthy snacks.

“While our growth to date has exceeded all industry standards and expectations, our partnership with an industry leader like Kraft Heinz now offers an unrivalled opportunity to reach millions more of the consumers who have been seeking products like ours for years.”

Earlier this month, Kraft Heinz also signed a definitive agreement to divest its Canadian natural cheese business to Parmalat for C$1.62bn (approximately $1.23bn).