McCormick makes a bid for Unilever’s food division

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, Retail Detail reports. 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.