Unilever is set to separate its food business and merge it with US spice maker McCormick & Company. The deal, potentially announced Tuesday, values Unilever’s food operations at approximately $44.8 billion.
The transaction involves a cash and stock component, including around $16 billion in cash, and will result in a new entity worth roughly $65 billion. Brands like Hellmann’s, Knorr, and Pot Noodle will combine with McCormick’s French’s, Old Bay, and Cholula.
London-listed Unilever will hold a 65% controlling stake in the new spin-off, effectively ending Unilever’s presence in the food industry. The move allows Unilever to focus on beauty, personal care, and home products.
The deal, considered the second-largest food transaction in history, was reviewed by Unilever’s board Monday afternoon. It will create a multibillion-dollar group operating under the McCormick name.