McCormick buys Unilever food business
Jars of Unilever brand Hellmann’s mayonnaise go on sale at a store in Dobbs Ferry, New York, USA, Wednesday, January 19, 2022.
Tiffany Hagler-Geard | Bloomberg | Getty Images
McCormick will buy Unilever Two food companies announced a cash and equity acquisition of a food business in a deal that values the Unilever unit at about $45 billion.
To buy most of the Unilever Foods portfolio, including Hellmann’s mayonnaise and UK favorite Marmite, McCormick will pay $15.7 billion in cash, and Unilever and its shareholders will own 65% of the combined company.
The deal will add billions of dollars to McCormick’s annual sales and further expand the spice giant’s portfolio into spreads and seasonings. He already owns Frank’s RedHot and Cholula hot sauces.
For Unilever, divesting most of its food business allows the company to focus on its faster-growing personal care segment. Unilever exited the ice cream business in December and now trades separately as the Magnum Ice Cream Company.
The deal follows a broader trend among Big Food. Many packaged food and beverage companies are weakening through divestitures and spinoffs as consumers buy fewer products. Nearly half of merger and acquisition activity in the consumer products sector in 2024 will come from divestitures, according to consulting firm Bain.
