Unilever Plc confirmed it is “now in advanced discussions” with Maryland-based spice maker McCormick & Company to sell its food business unit in a $15.7 billion transaction and said a final deal could be announced as soon as today.
“The Company is now in advanced discussions with McCormick & Company (“McCormick”) regarding a potential transaction,” the Anglo-Dutch consumer goods company wrote in a press release.
Unilever noted, “Work remains ongoing to agree and finalise a transaction and it is possible that an agreement could be concluded today, although there can be no certainty that a transaction will be agreed.”
Unilever explained that if the “transaction were to proceed,” it would combine most of its food business unit, excluding certain assets such as those in India, with the Hunt Valley-based spice company in a transaction valued at $15.7 billion.
After closing, Unilever and its shareholders are expected to own 65% of the combined company. The deal would be structured as a Reverse Morris Trust, making it tax-free for U.S. federal income tax purposes for Unilever and its shareholders.
The transaction is a big move for the spice company, known across the U.S. East Coast for its Old Bay seasoning and other brands such as French’s mustard and Frank’s RedHot.