Food Giant Unilever in Talks to Sell Hellmann’s Business to McCormick

Consumer goods company Unilever has confirmed it's discussing the sale of its food division, including popular brands like Hellmann's mayonnaise and Knorr soup, to U.S. spice maker McCormick. The potential all-stock transaction could unite Hellmann's with McCormick's Cholula hot sauce brand in a deal worth billions.

Consumer products giant Unilever announced Friday that it’s engaged in discussions with McCormick & Company, the American spice manufacturer, regarding the potential sale of its food division in what could be a major industry reshuffling.

The British-Dutch company disclosed it has received an unsolicited proposal for its food operations, which account for roughly 25% of Unilever’s overall revenue and brought in more than 12.9 billion euros ($14.91 billion) during the previous year.

Such a transaction would merge Unilever’s well-known food brands, including Hellmann’s mayonnaise and Knorr seasonings, with McCormick’s popular Cholula hot sauce and other spice products under one corporate umbrella.

The discussions represent a possible quickening of Chief Executive Fernando Fernandez’s plan to refocus Unilever on more profitable beauty and personal care segments, following the company’s decision to spin off its ice cream division in the previous year.

Both corporations emphasized in their individual announcements that no agreement is guaranteed, and neither provided specific financial terms for the proposed transaction.

The companies made their statements after the Wall Street Journal revealed Thursday evening that Unilever was exploring options to separate its food operations, which also encompass brands like Colman mustard and Marmite spread, potentially combining them with McCormick through an all-stock arrangement that could finalize within weeks.

Earlier reports from the Financial Times indicated that Unilever had previously considered but ultimately abandoned plans to merge its food assets with Kraft Heinz’s condiment operations.