Unilever spins off food unit in multibillion-dollar deal

LONDON: Unilever said Tuesday it had agreed a multibillion-dollar deal with US spices maker McCormick & Company to spin off most of the British group’s food business.

Brands including Hellmann’s mayonnaise and Knorr seasonings owned by consumer goods giant Unilever will combine with McCormick’s Schwartz and Ducros herbs to form a new business, according to company statements.

McCormick will pay Unilever $15.7 billion and offer shares under the deal, which sees the US group’s shareholders owning 35 percent of the new business.

Unilever, which is prioritising its personal care and beauty divisions, is taking a 9.9-percent stake with the intention of eventually offloading it. Unilever shareholders will take a 55.1-percent interest in the combined food group, to be known as simply McCormick.

“The transaction is another decisive step to reshape Unilever into a simpler, sharper, higher growth company,” the British group said in a statement.

McCormick chief executive Brendan Foley said the deal “will create a diversified flavour leader with a robust growth profile”.

The combination excludes Unilever’s food business in India, while both parties hope to complete the deal by mid-2027, subject to shareholder and regulatory approvals.

The new company expects annual revenues of $20 billion. McCormick, whose sales reached $7 billion in 2025, will retain its Maryland global headquarters and listing on the New York Stock Exchange.