Paul Weiss, Skadden Guide Kraft Heinz in Food Giant Split (1)

Skadden and Paul Weiss guided Kraft Heinz Co.'s plans to split into two separate companies, undoing a $46 billion merger a decade ago.

Paul, Weiss, Rifkind, Wharton & Garrison’s team includes partners Stan Richards and Jeffrey D. Marell, the global co-head of the firm’s mergers and acquisitions practice. The firm has advised Kraft on several M&A matters in previous years, including its $3.2 billion sale of its cheese businesses to Groupe Lactalis in 2021, and its proposed $143 billion proposal of Unilever in 2017, which was eventually abandoned.

Skadden, Arps, Slate, Meagher & Flom’s team includes New York based M&A partners Brandon Van Dyke and Kyle Hatton, as well as tax partner David Rievman and banking partner Janine Jjingo.

The company plans to separate into two entities through a tax-free spinoff. One entity will sell Heinz ketchup and other condiments and boxed meals with $15.4 billion in annual sales. The other will sell slower-growing grocery items such as Oscar Mayer hot dogs and Lunchables, with a revenue of $10.4 billion. The transaction is expected to close by the second half of 2026.

Other food and drink companies have broken up in recent years: Kellogg broke into two firms in 2023, and Keurig Dr Pepper recently said it would undo the 2018 deal that combined its coffee and beverage businesses.

Paul Weiss was among the firms that guided KDP in its plans to purchase JDE Peet’s and separate into two companies.

Cravath, Swaine & Moore and Kirkland & Ellis guided Heinz and Sullivan & Cromwell steered Kraft in the 2015 combination.