Unilever and McCormick Prepare to Offload Iconic Colman’s Mustard Brand Ahead of Major Food Merger

Unilever and McCormick & Co. have initiated the process of seeking a buyer for Colman’s, a heritage British mustard brand owned by Unilever. The decision comes as both companies prepare for a significant merger that will combine the majority of Unilever’s food business with McCormick’s operations.

In anticipation of the broader transaction, the Colman’s brand has been formally placed on the market. According to a statement released by the FMCG giant on 27 August, “A decision has been taken to market the Colman’s brand and assets to potential buyers in order to proactively seek to address potential competition concerns from the planned combination of Unilever Foods and McCormick.”

The two companies first announced the transaction, which valued Unilever’s food assets at approximately $44.8bn, in March. The merger will bring together well-known Unilever brands such as Knorr and Hellmann’s with McCormick’s portfolio, which includes Schwartz spices and French’s mustard.

Under the agreed terms, Unilever and its investors will receive a combination of McCormick’s voting and non-voting common stock, representing 65% of the combined business. Following the completion of the deal, Unilever shareholders are projected to hold 55.1% of the expanded group, McCormick shareholders 35%, and Unilever itself 9.9%. Additionally, the London-listed major will receive $15.7bn in cash, subject to specific closing adjustments.

Unilever, which has been gradually scaling back its food operations over recent years, described the deal at the time of announcement as “another decisive step to reshape Unilever into a simpler, sharper, higher growth company.”

McCormick indicated that the newly formed company “is expected to benefit from expanded global reach, enhanced scale across retail and foodservice channels and greater resources to invest in innovation, brand-building and global distribution.”

Leadership of the combined business will be assumed by McCormick CEO Brendan Foley and CFO Marcos Gabriel, with additional senior management representation drawn from Unilever’s food division.

The scope of the transaction notably excludes Unilever’s food assets in India, Nepal, and Portugal. The deal also does not include the group’s lifestyle nutrition business, its Buavita unit, or its Lipton ready-to-drink operations, and now, Colman’s mustard has been added to the list of excluded brands.

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