McCormick & Company announced it has entered into an agreement with Unilever to combine with its Foods business, excluding certain markets and segments, in a transaction valued at approximately $44.8 billion. The deal will create a global flavor-focused company with roughly $20 billion in combined 2025 revenue, significantly expanding scale across herbs, spices, condiments, sauces, and cooking aids.
Under the terms of the agreement, Unilever and its shareholders will receive a mix of equity and cash, including approximately $15.7 billion in cash and shares representing 65% of the combined company’s equity. Following completion, Unilever shareholders are expected to own about 55.1% of the new entity, McCormick shareholders about 35%, and Unilever will retain an additional 9.9% stake. The combined company will continue to operate under the McCormick name, remain listed on the NYSE, and maintain its global headquarters in Hunt Valley, Maryland, with an international headquarters in the Netherlands.
The transaction brings together complementary portfolios of globally recognized brands. Unilever’s Foods business includes major brands such as Knorr and Hellmann’s, while McCormick’s portfolio includes McCormick, French’s, Frank’s RedHot, Cholula, Old Bay, and Lawry’s. The combined company is expected to benefit from expanded geographic reach, particularly leveraging Unilever’s strength in EMEA, Latin America, and Asia Pacific, alongside McCormick’s strong North American presence.
The companies expect the combination to drive revenue growth, enhance margins, and deliver approximately $600 million in annual cost synergies within three years, with about two-thirds realized by year two. An additional $100 million in cost and revenue synergies is expected to be reinvested to support growth initiatives. The transaction is anticipated to be accretive to McCormick’s sales growth, operating margin, and adjusted earnings per share in the first full year following completion.
The combined business will also strengthen its foodservice platform, with approximately $6 billion in combined sales in 2025, and expand capabilities in research and development, manufacturing, and global distribution. McCormick’s leadership team will lead the combined company, with representation from Unilever, and Brendan Foley is expected to continue as Chairman, President, and Chief Executive Officer.
The deal is expected to close by mid-2027, subject to regulatory approvals and shareholder approval.
KEY QUOTES:
“This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavor. The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision. Together, we will be better positioned to accelerate growth in attractive categories. This combination will create a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them. Unilever Foods’ global portfolio of strong brands, combined with our proven expertise in insight-driven brand-building and integration, will enable us to deliver flavor in new and exciting ways for more consumers, driving significant growth across the combined portfolio and value for all stakeholders. Integrating two global organizations of this scale requires disciplined execution, and we are confident that our detailed integration roadmap, experienced teams from McCormick and Unilever, external advisors and our strong partnership will enable us to capture the full value of this opportunity. McCormick is the right partner for Unilever Foods’ brands and employees, and our shared culture and values will empower our combination. We are excited to welcome their exceptional talent and international expertise to our Power of People culture.”
Brendan Foley, Chairman, President and Chief Executive Officer, McCormick & Company
“For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a €39 billion pureplay HPC company with a proven sector-leading growth profile. We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavor powerhouse. By combining Unilever Foods’ iconic leading brands and global reach with McCormick’s exceptional portfolio, category expertise and capabilities, we are establishing a focused, high-quality business with significant top line growth and value creation potential. This is a combination built on strong strategic and cultural alignment, providing exciting opportunities for our people and ensuring our Foods brands continue to thrive as part of a global flavor leader. Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects.”
Fernando Fernández, Chief Executive Officer, Unilever
