Unilever, the UK-based consumer goods giant, is seeking a buyer for its Colman’s mustard brand ahead of a planned deal to offload the bulk of its food operations to US food group McCormick.
The disposal plan has been initiated to proactively address potential competition concerns from regulators, as McCormick already owns the French’s mustard brand. Investment bank Rothschild has been instructed to contact prospective buyers for the 200-year-old brand, though its valuation remains unclear.
In a statement, a Unilever spokesperson said: “A decision has been taken to market the Colman’s brand and assets to potential buyers in order to proactively seek to address potential competition concerns from the planned combination of Unilever Foods and McCormick. Discussions are ongoing and the operations continue as usual”.
The broader transaction, valued at $15.7 billion (£11.6 billion) in cash, will create a global food business worth approximately $66 billion (£48.4 billion) housing brands such as Knorr, Hellmann’s and Marmite alongside McCormick’s Schwartz and French’s. Under the deal, which excludes Unilever’s food assets in India, Nepal and Portugal, Unilever shareholders will receive 65% of the combined business, with McCormick shareholders owning 35%.
Source: FoodBev / Just Food / Sky News
