Packaged food giant the Kraft Heinz Company announced on Tuesday that its board of directors has unanimously approved a plan to split into two separate, publicly traded companies.
The proposed split will essentially reverse a merger between the companies from 2015, which has not provided favorable long-term results.
Shares of Kraft Heinz (NYSE:KHC) were down more than 4% in early trading on Tuesday after the announcement. The stock is down 13% year to date and more than 25% over the last 12 months.
What will the breakup look like?
The names of the two separate companies have yet to be decided.
The first company, referred to in the news release as “Global Taste Elevation Co.,” will primarily feature shelf-stable meals. It will include brands like Heinz, Kraft Mac & Cheese, and Philadel