UK: Unilever in talks to sell food business to McCormick

Unilever, the UK-based consumer goods giant, has confirmed it is in preliminary discussions with the US spice and seasonings manufacturer McCormick regarding a potential sale of its global food business.

The division includes global brands such as Knorr and Hellmann’s. The move follows a strategic review by Unilever’s CEO, Fernando Fernández, aimed at streamlining operations to focus on the company’s high-growth beauty, wellbeing, and personal care segments. While specific financial terms have not been disclosed, McCormick has a market value of approximately $14.8 billion.

In a statement addressing the speculation, Unilever said: “Unilever notes recent media speculation regarding a potential transaction involving its Foods business. […] Unilever confirms that it has received an inbound offer for its Foods business and is in discussions with McCormick & Company, Inc. There can be no certainty that any transaction will be agreed”.

McCormick has expanded its food portfolio through the acquisition of assets such as Cholula and the food division of Reckitt. This potential deal follows Unilever’s previous decisions to divest non-core assets, including its tea, spreads and ice cream divisions.

Source: Unilever / The Guardian / Food Dive / Just Food / Food Ingredients First