Unilever is now in “advanced discussions” with McCormick & Company on the sale of its food business – which would leave the giant’s beauty, wellbeing and personal care portfolio as its core focus.
The British consumer goods company released a statement on 31 March confirming that advanced talks of a “potential strategic transaction” of its food business are happening with the American food company following recent media speculation.
This potential deal would entail an upfront cash component of approximately US$15.7bn and the majority of the consideration in McCormick & Company equity.
“The company is now in advanced discussions with McCormick & Company regarding a potential transaction,” read a Unilever company statement.
“Work remains ongoing to agree and finalise a transaction, and it is possible that an agreement could be concluded today, although there can be no certainty that a transaction will be agreed.
“If a transaction were to proceed, it is currently contemplated that it would involve a combination of Unilever Foods (excluding parts of its foods portfolio, such as its business in India) with McCormick, with an upfront cash component of approximately $15.7bn and the majority of the consideration in McCormick equity.”
If this transaction were to complete, it is expected that Unilever and its shareholders would hold 65% of the combined company, added the statement.
The deal would be undertaken by a Reverse Morris Trust, which is intended to be tax-free for US federal income tax to Unilever and its shareholders.
Unilever’s food business includes well-known brands Hellmann’s mayonnaise and Marmite, and accounted for 26% of its turnover last year.
The full terms of the food spin-off sale will be announced if a transaction is agreed, with the company making “further announcements as appropriate”, the Unilever statement added.
Unilever's beauty brand portfolio includes popular ranges like Dove
This business shake-up is part of Unilever’s commitment to accelerate its beauty, wellness and personal care divisions, aiming to increase exposure in these high-performing areas.
Unilever’s sales soared 3.5% across the business in the year to 31 December 2025.
The standout stars were its beauty and wellbeing division, which grew 4.3%, and its personal care business, which increased 4.7%, while its food division grew at a slower pace of 2.5%.
Unilever’s beauty and wellbeing division accounted for 25% of the business’ turnover last year, personal care 26% and home care 23%.
Beauty and personal care brands in its portfolio include Clear, Dermalogica, Dove, Nutrafol, Paula’s Choice, Sunsilk, TREsemmé and Vaseline.
The consumer goods giant also completed the spin-off of its ice cream business at the end of the year, while also selling off several food companies.
This included Asian food brand Conimex, plant-based meat brand The Vegetarian Butcher and snack box line Graze.
Underperforming brands on the beauty side of the business were ditched too, including selling Kate Somerville and closing REN Clean Skincare.
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