McCormick Finalizes Major Acquisition of Unilever's Food Business

Spice and flavorings leader McCormick announced a significant strategic move on Tuesday, confirming its combination with Unilever’s extensive foods division. This acquisition brings household names such as Hellmann’s mayonnaise and Knorr seasonings under the McCormick umbrella.

The newly combined entity will continue to operate under the McCormick name and retain its current leadership structure. The transaction is set to close by mid-2027, pending necessary regulatory and shareholder approvals.

Financial Structure and Ownership Stakes

The deal establishes a substantial valuation for the merged food company. Upon closing, Unilever and its shareholders are projected to hold 65% of the outstanding equity, valued at approximately $29.1 billion.

In addition to the equity stake, Unilever will receive $15.7 billion in cash from the transaction. Conversely, McCormick shareholders are expected to retain a 35.0% ownership share in the expanded company.

Both companies confirmed earlier this month that discussions were underway, driven by Unilever’s goal to streamline operations and concentrate more heavily on its beauty and personal care segments.

Synergies and Combined Revenue Projections

McCormick, currently valued at $15 billion, is integrating billions more in brand value from Unilever. The companies project that the combined entity will achieve revenues reaching $20 billion for the 2025 fiscal year.

McCormick CEO Brendan Foley stated that the acquisition “accelerates McCormick’s strategy and reinforces our continued focus on flavor.” He noted that McCormick has “long admired Unilever’s foods business,” citing its portfolio as a strong complement to existing capabilities and long-term vision.

Notably, this transaction specifically excludes Unilever’s food operations located in India, Nepal, and Portugal.

Strategic Moves by Both Conglomerates

McCormick, headquartered in Hunt Valley, Maryland, has actively expanded its offerings to capitalize on rising consumer demand for global flavors and sauces. This follows major acquisitions, including Reckitt Benckiser’s food division (French’s mustard, Frank’s RedHot) in 2017 and the purchase of Cholula hot sauce in 2020.

London-based Unilever, founded nearly a century ago through a merger of Dutch and British entities, has been actively reshaping its portfolio. In 2024, Unilever spun off its ice cream business, which included brands like Ben & Jerry’s and Magnum, into the separate Magnum Ice Cream Co.

Furthermore, Unilever divested The Vegetarian Butcher and the healthy snacking brand Graze last year. Unilever’s vast current portfolio includes well-known brands such as Dove soap, Vaseline, Liquid I.V., Axe body spray, and Pepsodent toothpaste.

Following the announcement on Tuesday, shares for both McCormick and Unilever experienced slight increases before the market opened.