Unilever & McCormick unite to build global flavor powerhouse with strong growth outlook

Unilever and McCormick & Company announced that they have entered into an agreement to combine Unilever’s Foods business (“Unilever Foods”) with McCormick, forming a scaled, global flavour powerhouse with a strong growth trajectory and enhanced value creation potential.

The combined entity will bring together two industry-leading and culturally aligned businesses, creating a global portfolio with revenues of approximately $20 billion based on fiscal year 2025 data. The business will include iconic brands such as McCormick, Knorr and Hellmann’s, alongside high-growth brands including Cholula, Maille and Frank’s.

This strategic combination will establish a leading player across herbs, spices, seasonings, cooking aids, sauces and condiments, with a strong presence across both retail and foodservice channels. The new company will leverage complementary geographic footprints, deep R&D capabilities, and strong brand equity to meet growing global demand for flavour-driven food solutions.

As part of the transaction, Unilever will separate its Foods business, positioning itself as a focused, pureplay Home and Personal Care (HPC) company with approximately €39 billion in revenues based on fiscal year 2025. Post-separation, Unilever will concentrate on Beauty, Wellbeing, Personal Care, and Home Care categories, strengthening its portfolio in high-growth segments and fast-growing markets.

The transaction represents an enterprise value of $44.8 billion for Unilever Foods and includes a combination of equity and cash consideration. Unilever and its shareholders will receive a 65% stake in the combined company, alongside a cash payment of $15.7 billion, subject to closing adjustments. The company also expects to realize approximately $600 million in annual cost synergies within three years of completion.

Upon closing, McCormick will retain its name, global headquarters in Hunt Valley, Maryland, and its NYSE listing, while establishing an international headquarters in the Netherlands and planning a secondary European listing. The combined company will be led by McCormick’s current executive leadership team, with representation from Unilever Foods.

The transaction is expected to be structured as a tax-efficient Reverse Morris Trust and is anticipated to close by mid-2027, subject to regulatory approvals, shareholder approvals, and customary closing conditions.

Fernando Fernandez, chief executive officer of Unilever, commented, “For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a€39 billion pureplay HPC company with a proven sector-leading growth profile."

"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."

"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 flavour leader. Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects.”

Brendan Foley, chief executive officer of McCormick, commented, "This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavour. 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 Foods’ global portfolio of strong brands, combined with our proven expertise in insight-driven brand-building and integration, will enable us to deliver flavour 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."

The transaction has been unanimously approved by the Boards of Directors of both Unilever and McCormick.