Unilever–McCormick deal – summary
- Unilever will merge its Foods unit with McCormick creating a $20bn business
- The deal forms a global flavour powerhouse spanning sauces spices and seasonings
- Unilever shifts focus to higher‑growth beauty wellbeing and home care categories
- McCormick gains scale and key brands boosting competitiveness across global markets
- The transaction signals accelerating consolidation shaping long‑term food industry dynamics
Unilever has confirmed it’s to combine its Foods business (excluding India) with McCormick & Company, Inc. forming a business with a combined revenue of $20bn (€17.3bn).
The landmark deal brings two of the biggest names in food and beverage – British Unilever (Foods) worth between $32bn and $35bn and American McCormick worth around $14.51bn.
It also brings iconic brands like Unilever’s Hellmann’s mayonnaise and McCormick’s Cholula hot sauce under one roof.
In a joint statement, the British and American multinationals said the deal will “create a global flavour powerhouse anchored in a portfolio of iconic brands across herbs, spices, seasonings, cooking aids, sauces and condiments. It will bring together complementary geographic footprints and a global leading presence across both retail and food service channels, with deep science and R&D capabilities to meet consumers’ growing demand for flavour”.
Following the separation, Unilever will focus on its Beauty, Wellbeing, Personal Care and Home Care divisions, with revenues in the region of $44bn.
“For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a €39bn pureplay HPC company with a proven sector-leading growth profile," said Unilever CEO Fernando Fernandez, in a statement. “We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavour 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.”
Unilever-McCormick deal
As part of the deal, Unilever and its shareholders will receive a proportionate mix of McCormick’s existing voting and non-voting common stock, equating to 65% of the fully diluted combined company equity, equivalent to $29.1bn.
Unilever will also receive $15.7bn in cash, subject to “certain closing adjustments”, that will offset one-off separation and tax costs, pay down debt, and support $6.9bn of share buy-backs expected to run between 2026 and 2029.
The combined company will be led by the McCormick CEO Brendan Foley and CFO Marcos Gabriel, with senior management representation from Unilever Foods.
Executives from both McCormick and Unilever Foods will serve in key leadership roles. Upon closing, Unilever will appoint four of the twelve members of the combined company Board of Directors.
McCormick will retain its existing name, its Maryland global headquarters and NYSE listing. However, it will also establish international headquarters in the Netherlands and is planning a secondary listing in Europe.
“This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavour,” said McCormick CEO Brendan Foley. “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 flavour leader with a robust growth profile that remains differentiated by its focus on flavouring calories while others compete for them.”
Unilever is expected to combine Unilever Foods with McCormick in a “Reverse Morris Trust” transaction that is intended to be tax-free to Unilever and its shareholders for US federal income tax purposes, thereby mitigating some of the overall transaction-related tax costs.
What it means for the industry
For Unilever, the move draws a clear line under its shift towards becoming a pureplay home and personal care giant. By divesting Foods and realigning capital behind Beauty, Wellbeing, Personal Care and Home Care, the company gains sharper strategic focus, a cleaner growth narrative and significant financial flexibility.
For McCormick, the acquisition is transformational. It instantly scales the business into a global flavour leader with unrivalled reach across sauces, condiments, spices and seasonings. The addition of Hellmann’s, alongside its existing condiment and spice portfolio, positions McCormick at the centre of fast‑growing flavour‑driven categories, strengthening its competitive edge in both retail and foodservice.
And for the wider food industry, the deal signals a new phase of consolidation at a time where demergers are dominating Big Food.
