Unilever and McCormick agree to food business deal

Unilever will separate its food unit (Knorr, Hellmann's) and merge it with spice maker McCormick in a cash-and-stock deal valuing Unilever’s food business at about $44.8 billion. The transaction creates a large combined savory/condiments business, is a material M&A event for the consumer goods sector, and is likely to move the involved companies' share prices while reshaping Unilever's portfolio.

Analysis

Unilever will separate its food unit (Knorr, Hellmann's) and merge it with spice maker McCormick in a cash-and-stock deal valuing Unilever’s food business at about $44.8 billion. The transaction creates a large combined savory/condiments business, is a material M&A event for the consumer goods sector, and is likely to move the involved companies' share prices while reshaping Unilever's portfolio.