European consumer goods giant Unilever is in discussions about selling its foods division to U.S. sauces and spices producer McCormick, according to reports.
A person familiar with the matter told Bloomberg that the companies hope to hash out a deal by the end of the month. Reports of the McCormick talks followed an initial report that Unilever was considering exiting the food business altogether, either through a sale or spinoff.
The company has previously sold off or separated its ice cream, spreads and tea businesses, along with other subsidiaries, and its leadership has highlighted the challenges of the food sector compared to its personal care and household products.
Unilever’s food business, however, still includes Hellman’s mayonnaise and Knorr stock cubes, and could reportedly have an equity value of up to $33 billion, Bloomberg noted.
Any purchase by McCormick, meanwhile, would be easily the largest in the spice company’s history, according to the report — but it would also build the company toward becoming a global condiment giant.
