British consumer goods giant Unilever has confirmed it is in advanced discussions to sell its entire Foods business to spice and condiment maker McCormick & Company in a potential all-stock deal valued at up to €29 billion (approximately $33 billion). Both companies issued statements on Friday confirming the talks, which were first reported by The Wall Street Journal.
The Foods unit, which houses iconic brands like Knorr stock cubes and Hellmann's mayonnaise, generated over €12.9 billion in revenue in 2025, accounting for roughly a quarter of Unilever's total sales. The proposed deal would be the largest in McCormick's history and is seen as a major strategic pivot for both corporations.
For Unilever, a sale would accelerate CEO Fernando Fernandez's strategy to transform the company into a more focused entity centered on higher-growth, higher-margin segments. Fernandez aims for beauty, personal care, and wellbeing brands to make up two-thirds of revenue in the medium term, up from about half today. This follows a series of portfolio moves, including the spin-off of its ice cream business (Magnum Ice Cream Co.) last year and the earlier divestment of its tea and spreads divisions.
The deal structure is understood to be an all-stock transaction, with people familiar with the matter suggesting an agreement could be reached within weeks if negotiations hold. However, Unilever cautioned that "there is no certainty a deal will be finalised."
The scale of the potential acquisition presents significant complexity, as the target's estimated value is more than double McCormick's current market capitalization of roughly $14.8 billion. Analysts have flagged challenges, including McCormick's existing debt ratio of 2.7x and the "gap in scale" between the two entities. Barclays analyst Warren Ackerman noted that while a sale would free Unilever to pursue faster growth, it "could be a distraction for management in the near-term."
The discussions occur against a backdrop of industry pressures, with food companies facing softer consumer demand, a shift to private labels, and the impact of weight-loss drugs on consumption trends. The potential deal aligns with a broader corporate trend of restructuring to simplify operations and unlock shareholder value, a strategy historically championed by Unilever board member and activist investor Nelson Peltz.
