Kraft Heinz Having Difficulty Unloading Maxwell House

From benzinga.com

Food company Kraft Heinz KHC 1.61%, has struggled to sell the Maxwell House coffee brand since putting it up for sale in February for about $2.5 billion, the New York Post reported Thursday.

What Happened

Potential buyers met with Kraft Heinz in April to look at the books, but no offer was made, the Post said, citing an unnamed consumer banker.

The $2.5-billion price tag is one sticking point, the report said. While Kraft Heinz cannot lower the price further without hurting its finances, the amount also represents a premium of 9.8 times Maxwell House’s operating earnings of $255 million, the Post said, citing Piper Jaffray.

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