Unilever in talks to sell food business to McCormick

McCormick & Company, known for spices and seasonings, may soon be known for something new. The 137-year-old company is in talks to acquire Unilever’s food business, which includes well-known condiments such as Frank’s RedHot and Hellmann’s. This would position the company as a competitor to Kraft Heinz and Nestlé.

Bloomberg estimated Unilever’s food business has a potential equity value of $33 billion, which exceeds McCormick’s $14.5 billion market cap.

Unilever did put out a response on the recent media speculation. However, noted there is no certainty that a deal will be reached. The release stated, “Unilever notes recent media speculation regarding a potential transaction involving its Foods business. The Board believes Foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories and is confident in the future of the Foods business as part of Unilever. Unilever confirms that it has received an inbound offer for its Foods business and is in discussions with McCormick & Company, Inc. There can be no certainty that any transaction will be agreed.”