Unilever shift to beauty proceeds with talks to sell division that sells mayonnaise and Marmite

By Nora Redmond

Unilever in talks to sell food business to McCormick

In December, Unilever completed the spinoff of its ice cream business.

Consumer-goods company Unilever is in talks with McCormick & Company - which produces spices, seasoning and condiments - to sell its food business.

The British-Dutch company confirmed the news on Friday following media speculation that it had received an inbound offer for its "highly attractive" food unit, which includes brands such as Marmite, Knorr and Hellmann's. It said it was in discussions with Maryland-headquartered McCormick (MKC) about the combination, adding: "There can be no certainty that any transaction will be agreed."

Unilever (UL) (UK:ULVR) completed the spinoff of its ice cream business, which owns Magnum and Ben & Jerry's, in December of the Magnum Ice Cream (NL:MICC).

Earlier this year, Fernando Fernandez, Unilever's CEO and former president of the company's beauty and well-being business, said the group was shifting its portfolio into more beauty, well-being and personal care.

Unilever is valued at about GBP100 billion, or $134 billion.

Unilever shares rose 1% in early New York trade as McCormick shares slipped.

Despite initially falling after the announcement, its stock has since risen more than 1%. Shares in McCormick edged about 0.2% in premarket trading in New York.

Analysts at JPMorgan led by Celine Pannuti, wrote in a note on Friday that they expect the deal to be a balance of cash and shares because McCormick has a much smaller valuation of about $14.8 billion. They noted that Unilever could end up owning about 63% of the new company.

A Financial Times report suggests that Unilever recently held talks with Kraft Heinz (KHC), the famous ketchup maker, to merge the food business with the American company's condiments arm, but the talks ended.

McCormick said in a statement on the potential transaction that it "does not intend to make any additional comments regarding this matter unless and until it is determined that additional disclosure is appropriate or necessary."

McCormick was founded in 1889 in Baltimore. It's behind Mexican hot sauce Cholula and condiments brand French's.

-Nora Redmond

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03-20-26 0952ET