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-per cent stake with the intention of eventually offloading it.
Unilever shareholders will take a 55.1-per cent 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.
The parties hope to complete the deal by mid-2027, subject to shareholder and regulatory approvals.
Shares in Unilever fell around five per cent on London’s top-tier FTSE 100 index following the announcement.
‘Loss of appetite’
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.
It plans to establish an international headquarters in the Netherlands and a secondary listing in Europe.
The deal comes as Unilever focuses on core brands such as Dove soap and Cif surface cleaner.
“While Unilever’s food operations generate strong margins, growth has lagged behind its personal care and beauty brands,” said AJ Bell investment director Russ Mould.
“Competition from unbranded alternatives hasn’t helped and, in a GLP-1 (weight-loss drug) world, people’s literal appetite for less healthy packaged food is being suppressed,” he added.
Last year, Unilever spun off its ice cream division, which included the Magnum and Ben & Jerry’s brands.
Changes at Unilever in 2025 included also major job cuts and Fernando Fernandez becoming chief executive after serving as the company’s chief financial officer.
“For Unilever, this transaction is another decisive step in sharpening our portfolio,” he said Tuesday.
“We are unlocking trapped value through a growth-led separation of foods, creating a scaled, global flavour powerhouse.”
As well as overseeing the ice cream spinoff, Fernandez has focused on growing sales in the United States and India.
Unilever last year posted a small rise in annual profits to €5.7 billion.
