Unilever confirmed this morning that it has received an offer from spice manufacturer McCormick & Company for its food division. It remains uncertain whether a deal will be reached.
No guarantees
The multinational is responding with a press release to an article in which The Wall Street Journal states that a deal between the two companies could be finalized within a few weeks. According to Unilever, there is no guarantee that an agreement will be reached. McCormick also confirms the acquisition talks but says there is no certainty regarding a transaction.
McCormick is a producer of sauces and spices under brands such as Ducros, Cholula, El Guapo, Club House, French’s Mustard, and Frank’s RedHot. The company generates revenue of approximately $7 billion (€6.05 billion) in 150 countries. 61% of revenue comes from the consumer market, and 39% from flavor solutions for foodservice and industry.
Unilever’s food division generates revenue of more than 13 billion euros, with well-known brands such as Knorr and Hellmann’s. The company spun off its ice cream division as The Magnum Ice Cream Company and has divested several non-core food businesses in recent years, including the tea division, margarines, and brands such as De Vegetarische Slager, Conimex, and Unox.
Unilever is increasingly positioning itself as a group focused on beauty, personal care, and well-being. The company has therefore been seeking a solution for its food division for some time, such as a sale or a spin-off. Previous talks with Kraft Heinz about a merger came to nothing. Now it appears the multinational is exploring yet another avenue.
