McCormick's seasoned salt business was sold off to address antitrust concerns and facilitate the acquisition of other product lines.
The Divestiture of McCormick Seasoned Salt
McCormick & Company agreed to divest, or sell off, its seasoned salt business. This action was taken in response to pressure from the U.S. Federal Trade Commission (FTC). The divestiture was a condition for McCormick to gain approval for its bid to acquire two specific brands of marinades and seasoning products from Unilever N.V.
The seasoned salt business that McCormick sold was valued at approximately $18 million. This strategic move allowed McCormick to proceed with its larger acquisition plans, demonstrating how companies sometimes need to adjust their existing portfolios to comply with regulatory requirements when pursuing expansion through mergers or acquisitions.
