Unilever has announced a $15.7 billion deal with US spices maker McCormick & Company to spin off most of its food business. The move is part of Unilever’s strategy to focus on personal care and beauty brands.
Under the agreement, Unilever’s well-known food brands, including Hellmann’s mayonnaise and Knorr seasonings, will merge with McCormick’s Schwartz and Ducros herbs. The new company will operate under the McCormick name, with projected annual revenues of $20 billion.
Unilever shareholders will hold 55.1 percent of the combined company, while McCormick shareholders will own 35 percent. Unilever will retain a 9.9 percent stake, which it plans to gradually sell in the future. The deal excludes Unilever’s food business in India and is expected to be completed by mid-2027, pending shareholder and regulatory approvals.
McCormick will maintain its headquarters in Maryland and listing on the New York Stock Exchange. The company also plans to establish an international headquarters in the Netherlands and a secondary listing in Europe.
Unilever said the transaction will simplify its portfolio and allow more focus on faster-growing sectors, such as personal care brands Dove and Cif. Last year, Unilever also spun off its ice cream division, including Magnum and Ben & Jerry’s brands, as part of a wider strategy to sharpen the company’s focus.
Analysts note that while Unilever’s food business remains profitable, growth has lagged behind its personal care and beauty divisions. Consumer trends toward healthier diets and competition from unbranded products have impacted sales.
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Unilever CEO Fernando Fernandez stated the deal will unlock value and create a global flavor leader. The company continues to prioritize growth in key markets, including the United States and India. Shares in Unilever fell around five percent on London’s FTSE 100 following the announcement.
