Unilever, agreement with McCormick: a 66 billion food giant is born
After the deal Unilever will be able to concentrate on the faster growing personal care segment
Unilever announced that it has reached an agreement to merge its food division with spice producer McCormick, in a deal that will create a company with a total value of $65.8 billion, including debt. The deal values Unilever Foods at $44.8 billion, including debt, and is expected to raise $15.7 billion for Unilever.
L’intesa
McCormick will therefore merge with Unilever's food division, which includes well-known brands such as Hellmann's and Knorr, creating a food company with annual sales of $20 billion. The merged company will retain the McCormick name and leadership. However, by the time the deal closes, Unilever shareholders are expected to hold 55.1% of the food company, as well as 9.9% of its outstanding share capital, while McCormick shareholders will hold 35.0%
L’impatto
With the divestiture of a large part of its food division, Unilever will be able to concentrate on the faster-growing personal care segment. In December, Unilever spun off its ice cream division, now listed separately as Magnum Ice Cream Company. The deal is part of a broader trend among large food companies.
