Unilever and McCormick have agreed to combine Unilever’s Foods division with the US-based spice and seasoning giant, creating a global flavor powerhouse.
A press release said the deal brings together major brands including McCormick, Knorr and Hellmann’s, alongside high-growth labels such as Cholula, Maille, and Frank’s as part of a global portfolio with revenues of US$20 billion, based on fiscal year 2025 data. The combined company will focus on herbs, spices, sauces and condiments, with a strong presence across both retail and foodservice channels.
As part of the transaction, Unilever will receive a mix of McCormick shares representing 65% of the combined company, along with US$15.7 billion in cash. The deal values Unilever Foods at US$44.8 billion. Unilever shareholders will ultimately own 55.1% of the new entity, while McCormick shareholders will hold 35%.
The move marks a significant strategic shift for Unilever, which will separate its Foods business to focus on higher-growth categories such as Beauty, Wellbeing, Personal Care and Home Care. Post-transaction, Unilever will operate as a pure-play HPC (Home and Personal Care) company with revenues of around 39 billion Euros.
Executives say the combination is designed to accelerate growth and unlock value. The new McCormick-led business is expected to benefit from strong margins, increased brand investment and around US$600 million in annual cost synergies within three years.
McCormick will retain its name, headquarters in Maryland and New York Stock Exchange listing, while adding an international base in the Netherlands and planning a secondary European listing. Leadership will remain under McCormick’s current CEO and CFO, with support from Unilever executives.
The deal will be structured as a tax-efficient Reverse Morris Trust and is expected to close by mid-2027, pending shareholder and regulatory approvals.
Unilever CEO Fernando Fernandez said the transaction sharpens the company’s focus on faster-growing sectors while unlocking value from its Foods division. McCormick CEO Brendan Foley described the merger as transformative, strengthening the company’s leadership in flavour and positioning it for long-term growth.
Unilever plans to use proceeds from the deal to reduce debt and fund 6 billion Euros in share buybacks between 2026 and 2029, reinforcing its commitment to shareholder returns.
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Naresh Khanna – 10 February 2025
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