Prime Highlights
- Unilever has agreed to merge its food business with McCormick & Company to create a global flavour-focused company valued at around $65 billion.
- The deal will reshape both firms’ strategies, with Unilever focusing on beauty and personal care while McCormick leads the combined food business.
Key Facts
- Under the agreement, Unilever will receive cash consideration and a minority stake in the combined company, while McCormick & Company will lead operations with listings in the United States and Europe.
- The companies expect to generate annual cost savings over the coming years, and both boards have unanimously approved the transaction.
Background
Unilever has agreed to merge its food business with McCormick & Company in a major global transaction that will create a food portfolio worth around $65 billion and reshape both companies’ future strategies.
Under the terms of the deal, Unilever will separate its foods division and merge it with McCormick to form a scaled, global flavour-focused business.
Once the deal completes, McCormick will lead the combined company, with senior management drawn from both McCormick and Unilever Foods leadership teams. McCormick will keep its name and US listing, while setting up an international headquarters in the Netherlands with a secondary European listing.
The combined structure will bring together well-known food brands, including Knorr and Hellmann’s, under a unified global platform alongside McCormick’s existing portfolio. The new business aims to strengthen scale, improve focus, and drive stronger category-led growth.
Unilever said the move will allow it to put greater focus on beauty, well-being, personal care and home care, positioning itself as a pure-play home and personal care company based on fiscal year 2025 revenue. The company expects the separation to simplify operations and drive better growth and returns.
Under the deal, Unilever will pocket a cash payment and a minority stake in the combined company, with plans to wind down its holding over time. Shareholders will hold the bulk of the equity in the new business, while McCormick and Company shareholders will take a significant minority stake.
The companies expect to save around $600 million annually within three years, with the gains channelled back into growth initiatives. Both boards voted unanimously in favour of the transaction, reflecting clear alignment on strategy between the two firms.
Unilever CEO Fernando Fernandez said the deal would free up value and speed up growth, while McCormick and Company CEO Brendan Foley said joining forces would boost the company’s global flavour strategy and widen its reach across key markets.
