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Unilever and McCormick and Company have agreed to combine McCormick with the Unilever Foods business in a transaction valuing the latter at approximately $44.8bn (£33.7bn), with a combined deal value of $66bn (£49.6bn).
The deal will create a global food group with combined fiscal year 2025 revenues of approximately $20bn (£15bn).
Under the terms, Unilever and its shareholders will receive a 65% equity stake in the combined company, valued at $29.1bn (£21.9bn).
Unilever will also receive $15.7bn (£11.8bn) in cash. The transaction implies an enterprise value for Unilever Foods of 13.8x fiscal year 2025 EBITDA.
The combined entity brings together brands including Knorr, Hellmann’s, French’s, and Frank’s RedHot. Together, the businesses currently operate across herbs, spices, seasonings, and condiments in both retail and foodservice channels.
McCormick will maintain its global headquarters in Hunt Valley, Maryland, and also plans to establish an international headquarters in the Netherlands to leverage existing research and development facilities.
The transaction is structured as a Reverse Morris Trust to mitigate tax costs for Unilever and its shareholders. It has received unanimous approval from the boards of both companies.
Brendan Foley will remain chairman, president, and chief executive of McCormick, while Marcos Gabriel will continue as executive vice president and chief financial officer.
Unilever will appoint four members to a 12-strong board of directors, and one Unilever executive will serve as a director for two years to assist with the transition.
Brendan Foley, chairman, president and CEO of McCormick, said: “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 organisations 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.”
Fernando Fernández, CEO of Unilever, said: “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.”
The deal is expected to close by mid 2027. Completion remains subject to approval by McCormick shareholders and regulatory authorities.
