Unilever said Tuesday it had agreed a multibillion-pound deal with US spices maker McCormick & Company to spin off most of the British group's food business.
Brands including Hellmann's mayonnaise and Knorr seasonings owned by consumer goods giant Unilever will combine with McCormick's Schwartz and Ducros herbs to form a new business, according to company statements.
McCormick will pay Unilever $15.7 billion and offer shares under the deal, which sees the US group's shareholders owning 35 percent of the new business. The transaction reflects an enterprise value of $44.8bn for Unilever Foods.
Unilever, which is prioritising its personal care and beauty divisions, is taking a 9.9-percent stake with the intention of eventually offloading it.
Unilever shareholders will take a 55.1-percent interest in the combined food group, to be known as simply McCormick.
"The transaction is another decisive step to reshape Unilever into a simpler, sharper, higher growth company," the British group said in a statement.
McCormick chief executive Brendan Foley said the deal "will create a diversified flavour leader with a robust growth profile".
"Unilever Foods’ global portfolio of strong brands, combined with our proven expertise in insight-driven brand-building and integration, will enable us to deliver flavour in new and exciting ways for more consumers, driving significant growth across the combined portfolio and value for all stakeholders," Foley added.
The combination excludes Unilever's food business in India, while both parties hope to complete the deal by mid-2027, subject to shareholder and regulatory approvals.
The new company expects annual revenues of $20bn. McCormick, whose sales reached $7bn in 2025, will retain its Maryland global headquarters and listing on the New York Stock Exchange.
It plans to establish international headquarters in the Netherlands and a secondary listing in Europe.
The combined company will be led by the McCormick CEO and CFO, with senior management representation from Unilever Foods.
The deal comes as Unilever focuses on core brands such as Dove soap and Cif surface cleaner. The separation of Unilever Foods will position Unilever as a leading pureplay home and personal care company, with €39bn (£33.9bn) of revenues based on fiscal year 2025.
Last year, it spun off its ice cream division, which included the Magnum and Ben & Jerry's brands.
Changes at Unilever in 2025 included also major job cuts and Fernando Fernandez becoming chief executive after serving as the company's chief financial officer.
"For Unilever, this transaction is another decisive step in sharpening our portfolio," he said Tuesday.
"We are unlocking trapped value through a growth-led separation of foods, creating a scaled, global flavour powerhouse."
As well as overseeing the ice cream spinoff, Fernandez has focused on growing sales in the United States and India.
Unilever last year posted a small rise in annual profits to €5.7bn.