Kraft Heinz, the ailing food giant, has tapped investment bank Credit Suisse to review options for its Maxwell House coffee business, which could include a potential sale, people familiar with the matter tell CNBC.
The coffee business has roughly $400 million in earnings before interest, taxes, depreciation and amortization, the people said.
Based off valuations for other sales of consumer brands, a sale could fetch a price of at least $3 billion, they said, though cautioning its price would depend on buyer interest. The coffee industry has become more challenging in the past few years, but private equity firms have shown interest in buying some large, tired brands. Private equity firm KKR last year paid roughly $8 billion for Unilever’s I Can’t Believe It’s Not Butter and other spreads business.