Unilever Foods and McCormick combine to create $65bn global food giant

Unilever and McCormick & Company have agreed to combine Unilever’s Foods business with the US seasoning giant in a deal set to create a $65bn global food company.

The transaction will bring together iconic brands including McCormick, Knorr and Hellmann’s alongside high-growth brands such as Cholula, Maille and Frank’s. The combined portfolio will span herbs, spices, seasonings, cooking aids, sauces and condiments across both retail and foodservice channels. Based on fiscal year 2025 data, the combined business will generate approximately $20bn in annual revenues.

The companies said the combined business will have a global leading presence across both retail and foodservice channels.

The deal is expected to close by mid-2027, subject to McCormick shareholder approval, regulatory approvals and other customary closing conditions.

Under the terms of the agreement, Unilever and its shareholders will receive a proportionate mix of McCormick’s voting and non-voting shares equating to 65 percent of the fully diluted combined company equity, alongside $15.7bn in cash. Unilever shareholders will own 55.1 percent of the combined company, McCormick shareholders will hold 35 percent and Unilever will retain a 9.9 percent stake, which it intends to sell down over time.

The transaction values Unilever’s Foods business at $44.8bn.

Creation of a scaled global food business

For the global food industry, the combination will create a scaled, global flavour powerhouse with a strong presence across retail and foodservice channels, bringing together complementary geographic footprints and brand portfolios.

The companies said the combined business will have leading positions across key food categories, supported by deep research and development capabilities and continued investment in brand building and innovation to meet growing consumer demand for flavour-led products.

The businesses expect to realise approximately $600m in annual cost synergies within three years of completion, with an additional $100m reinvested to support further growth.

Strategic shift for Unilever

For Unilever, the transaction forms part of a broader strategy to reshape the company and focus on faster-growing home and personal care categories.

Following the separation of the Foods division, Unilever will operate as a €39bn pure-play business across Beauty, Wellbeing, Personal Care and Home Care.

Unilever said McCormick represents a “natural home” for its Foods business due to the companies’ cultural alignment and complementary capabilities.

Fernando Fernandez, Chief Executive Officer of Unilever, said: 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.”

McCormick expands global portfolio

For McCormick, the transaction significantly expands its global brand portfolio and strengthens its presence in major food categories.

McCormick said its proven track record of integrating acquired brands and investing behind them to accelerate growth made it a natural home for Unilever’s Foods portfolio.

Brendan Foley, Chief Executive Officer of McCormick, said the deal will accelerate the company’s long-term growth strategy.

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.”

Leadership and structure of the combined company

Following completion, the combined company will operate under the McCormick name, retaining its global headquarters in Hunt Valley, Maryland, and its listing on the New York Stock Exchange. The company plans to establish an international headquarters in the Netherlands and pursue a secondary listing in Europe.

The combined company will be led by the McCormick CEO and CFO, with senior management representation from Unilever Foods. Brendan Foley will serve as Chairman, President and Chief Executive Officer, while Marcos Gabriel will become Executive Vice President and Chief Financial Officer.

If approved, the deal will reshape both companies, creating a major new global food player while enabling Unilever to sharpen its focus on higher-growth consumer goods categories.