News
All-Stock Deal · Food Business · McCormick · Unilever
Unilever is reportedly in advanced discussions to spin off its food division and merge it with spice maker McCormick in an all-stock transaction, a move that would bring brands like Hellmann's mayonnaise and Cholula hot sauce under a single entity, according to the Wall Street Journal.
This potential deal, which the Wall Street Journal reports could finalize within weeks, aligns with Unilever's strategic objective to streamline its portfolio and concentrate on its beauty and wellbeing segments. Reuters previously reported Unilever considered selling British food brands such as Marmite, Colman's, and Bovril.
The consumer goods giant, valued at over $134 billion by LSEG, seeks to divest from a food sector grappling with weak consumer demand, budget-conscious spending shifts, and the rising adoption of weight-loss drugs impacting overall consumption. McCormick, with a market value of approximately $14.51 billion according to LSEG, recently projected weak profit for 2026 due to higher tariff-related costs.
The Financial Times reported earlier discussions between Unilever and Kraft Heinz regarding a partial food business merger concluded without a deal.
