Unilever has confirmed it is locked in talks with McCormick over a deal to sell its €12.9bn food division to the US spice supplier.
It follows a week of speculation surrounding the future of the portfolio of brands such as Hellmann’s, Knorr, Horlicks, Marmite and Pot Noodle.
Unilever said in a short statement to the London Stock Exchange this morning that had received an inbound offer for its foods business and was in discussions with McCormick & Company.
“There can be no certainty that any transaction will be agreed,” the group added.
“Unilever notes recent media speculation regarding a potential transaction involving its foods business.
“The board believes foods is a highly attractive business, with a strong financial profile led by market-leading brands in growing categories and is confident in the future of the foods business as part of Unilever.”
The statement comes after the Wall Street Journal reported last night that Unilever was in talks to separate the food division and combine it with McCormick.
An all-stock deal could reportedly be concluded in a matter of weeks.
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McCormick is headquartered in Maryland and is traded on the New York Stock Exchange. The business generated revenues of $6.8bn in the 12 months to 30 November 2025, a rise of 2% year on year.
It supplies a range of herbs, spices, and seasonings, including the Schwartz brand, as well as condiments such as Frank’s RedHot, Cholula and French’s.
McCormick explored a £540m takeover of Premier Foods in 2016 before eventually walking away from the deal after tabling three offers. It acquired Italian flavourings business Enrico Giotti for €120m later that year.
McCormick this morning confirmed it was engaged in discussions with Unilever regarding a potential strategic transaction.
“While these discussions are ongoing, there can be no certainty or assurances as to whether an agreement for a transaction will be reached or as to the terms or timing of any such transaction,” the group said.
“McCormick regularly evaluates its portfolio and strategic options in pursuit of maximizing shareholder value and consistent with its fiduciary duties and in consultation with its financial and legal advisors.
“The company does not intend to make any additional comments regarding this matter unless and until it is determined that additional disclosure is appropriate or necessary.”
Barclays estimated the value of a standalone Unilever food business to be in the range of €28bn to €31bn.
It also emerged earlier this week that Unilever and Kraft Heinz recently held talks – which have now ended – over a mega-merger of the former’s food business with the latter’s condiments division.
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