On August 4, 2011, Kraft Foods Inc. announced that its Board of Directors intends to create two independent public companies: a high-growth global snacks business with estimated revenue of approximately $32 billion and a high-margin North American grocery business with estimated revenue of approximately $16 billion. Cravath is representing Kraft Foods in connection with this transaction. Kraft Foods expects to create these companies through a tax-free spin-off of the North American grocery business to Kraft Foods shareholders. The transaction is subject to customary closing conditions and is expected to close before year-end 2012.
The Cravath team is led by partner Philip A. Gelston on corporate matters and includes partner Stephen L. Gordon on tax matters.