McCormick & Company Inc. (NYSE: MKC) and Unilever PLC (LSE: ULVR / NYSE: UL) have announced an agreement to combine McCormick with Unilever’s Foods business, creating a global flavor company with approximately $20 billion in combined fiscal year 2025 revenue.
Under the terms of the agreement, Unilever and its shareholders are expected to receive shares equating to 65 percent of the fully diluted combined-company outstanding equity, equivalent to $29.1 billion, based on McCormick’s one-month volume-weighted average price of $57.84. Unilever will also receive $15.7 billion in cash, subject to certain closing adjustments. The implied enterprise value for Unilever Foods is approximately $44.8 billion.
Upon closing, Unilever shareholders are expected to own 55.1 percent, McCormick shareholders will own 35 percent and Unilever is expected to own 9.9 percent of the fully diluted combined-company outstanding equity.
The combination brings together two organizations with complementary global footprints and portfolios of brands across herbs, spices, seasonings, cooking aids, condiments and sauces. The combined 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.
“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,” said Brendan Foley, chairman, president and CEO of Maryland-based McCormick. “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,” Foley continued. “McCormick is the right partner for Unilever Foods’ brands and employees, and our shared culture and values will empower our combination.”
Fernando Fernández, CEO of Unilever, said, “For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories. 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 portfolio, category expertise and capabilities, we are establishing a focused, high-quality business with significant top line growth and value creation potential.”
Unilever Foods’ portfolio is led by Knorr and Hellmann’s, which together comprise approximately 70 percent of sales. Knorr serves more than five billion consumers in more than 90 countries, and Hellmann’s reaches consumers in more than 65 countries. The business has achieved an underlying sales compound annual growth rate of approximately 2.8 percent over the past two years.
McCormick’s brand portfolio includes McCormick, French’s, Frank’s RedHot, Cholula, Stubb’s, OLD BAY and Lawry’s. The combined company expects to realize approximately $600 million in run-rate annual cost synergies, net of growth reinvestments, over a three-year period. On a combined basis, McCormick and Unilever Foods had combined 2025 adjusted EBITDA of $4.7 billion and an operating income margin of approximately 21 percent.
Upon closing, Foley is expected to remain chairman, president and CEO, and Marcos Gabriel is expected to remain EVP and CFO. McCormick will maintain its global headquarters in Hunt Valley, Maryland, with an international headquarters in the Netherlands. The combined company is planning a secondary stock listing in Europe.
The transaction is expected to close by mid-2027, subject to McCormick shareholder approval, required regulatory approvals and other customary closing conditions. The agreement has been approved by both companies’ boards of directors.
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