BY Fraser Tennant
US food company McCormick & Company has agreed to combine with most of the foods business of UK multinational Unilever in a cash-and-stock transaction valued at approximately $44.8bn, creating one of the world’s largest flavour-focused consumer goods companies.
The transaction brings together McCormick’s spices, seasonings and condiments portfolio with Unilever’s well-known food brands, including Hellmann’s and Knorr, in a move designed to establish a global ingredients and flavour powerhouse with annual revenues of around $20bn.
Under the terms of the agreement, Unilever shareholders will own 55.1 percent of the combined company through their equity distribution, while McCormick shareholders will hold 35 percent. Unilever Plc will retain a direct 9.9 percent ownership stake, which it has said it intends to sell down gradually over time. McCormick will also pay $15.7bn in cash to Unilever as part of the deal.
The combination is structured as a Reverse Morris Trust, allowing Unilever to separate its foods business in a tax-efficient manner while sharpening its focus on faster-growing beauty, wellbeing, personal care and home care categories. The deal excludes Unilever’s food operations in India and certain smaller markets.
Bringing together two industry-leading organisations with complementary global footprints, the combined company is expected to benefit from expanded international reach, greater scale across retail and foodservice channels, and increased capacity to invest in innovation, marketing and distribution. The companies forecast annual run-rate cost synergies of approximately $600m by the third year following completion.
Unilever products are sold in more than 190 countries and are used by around 3.7 billion people each day. Following recent portfolio changes, including the spin-off of its ice cream business, Unilever reported sales of €50.5bn in 2025 and employed approximately 96,000 people.
“Unilever’s 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 chief executive of McCormick. “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 flavoring calories while others compete for them.”
McCormick generates around $7bn in annual sales across more than 150 countries and territories, supplying herbs, spices, seasonings, condiments and flavour solutions to retailers, food manufacturers and foodservice customers worldwide. The acquisition marks the largest deal in the company’s history and a significant expansion beyond its traditional spice-focused core.
“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,” said Fernando Fernández, chief executive of Unilever. “Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects.”
Following completion, McCormick will remain headquartered in Hunt Valley, Maryland, with an additional international headquarters established in the Netherlands, reflecting Unilever Foods’ historic base. The combined group will also seek a secondary stock market listing in Europe.
The transaction has been unanimously approved by the boards of both companies and is expected to close by mid-2027, subject to shareholder approval, regulatory clearances and customary closing conditions.
Mr Foley concluded: “Integrating two global organizations of this scale requires disciplined execution, and we are confident that our detailed integration roadmap, experienced teams from McCormick and Unilever, external advisers and our strong partnership will enable us to capture the full value of this opportunity.”