British multinational Unilever makes global move in the food category
British multinational Unilever announces a new business in the food sector. Photo: iStock
TL;DR
- Unilever is selling its food division to McCormick & Company in a deal valued at approximately $44.8 billion.
- The transaction will create a new joint venture that combines brands like Knorr and Hellmann's with McCormick's brands.
- McCormick will pay Unilever $15.7 billion and issue stock, resulting in McCormick investors owning 35% of the new entity.
- Unilever is strategically shifting its focus to higher-value businesses like cosmetics, personal hygiene, and home products.
- In a separate move, Unilever is selling part of its home care business in Colombia and Ecuador to Alicorp.
- The home care divestment includes brands like Fab, 3D, and Aromatel.
- These decisions are part of Unilever's global strategy to concentrate on categories with stronger competitive advantages and growth potential.