Unilever to combine foods business with McCormick to form global flavour company

London, United Kingdom – Unilever and McCormick & Company have announced an agreement to combine Unilever’s Foods business with McCormick in a transaction that will create a global flavour-focused food company.

The combined entity will bring together a portfolio of well-known brands including Knorr, Hellmann’s and McCormick, as well as high-growth brands such as Cholula, Maille and Frank’s RedHot.

Based on fiscal year 2025 data, the combined business will generate approximately $20 billion in annual revenue. The companies said the move aims to create a scaled food company specialising in flavour categories including herbs, spices, seasonings, sauces and condiments.

The transaction implies an enterprise value of $44.8 billion for Unilever’s Foods business.

New focus on home, personal care business

Following the separation of its foods unit, Unilever will operate as a pureplay home and personal care (HPC) company, focusing on categories including beauty, wellbeing, personal care and home care.

Based on fiscal year 2025 figures, the reshaped company will have €39 billion in revenue and focus its resources on faster-growing consumer categories and markets.

The move forms part of Unilever’s broader strategy to simplify its portfolio and concentrate investment on categories with stronger structural growth, including science-led innovation and premium consumer products.

Over the past three years, Unilever said it has delivered performance above the broader home and personal care sector, which the company attributes to capabilities in innovation, demand creation and operational execution.

Details of the transaction

Under the terms of the deal, Unilever and its shareholders will receive 65% of the fully diluted equity in the combined company, equivalent to approximately $29.1 billion based on McCormick’s one-month volume-weighted average share price of $57.84.

Unilever will also receive $15.7 billion in cash, which the company said will be used to offset separation and tax costs, reduce debt and support €6 billion in share buybacks planned between 2026 and 2029.

Once the transaction closes:

• Unilever shareholders will hold 55.1% of the combined company
• McCormick shareholders will hold 35.0%
• Unilever itself will retain a 9.9% stake

Unilever said it intends to gradually sell down its remaining stake after at least one year following the deal’s completion.

The transaction is expected to generate approximately $600 million in annual cost synergies, with the full value expected to be realised within three years.

Post-transaction leadership structure

After completion, the combined company will continue operating under the McCormick name and maintain its global headquarters in Hunt Valley, Maryland. It will also establish an international headquarters in the Netherlands and plans to pursue a secondary listing in Europe.

Brendan Foley will serve as Chairman, President and CEO of the combined company, while Marcos Gabriel will continue as Chief Financial Officer.

Executives from both McCormick and Unilever Foods are expected to hold leadership roles, while Unilever will appoint four of the twelve members of the combined company’s board.

Unilever CEO Fernando Fernandez said the transaction aligns with Unilever’s strategy to sharpen its focus on faster-growing categories.

“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.”

Meanwhile, McCormick President and CEO Brendan Foley said the acquisition aligns with the company’s long-term strategy focused on flavour categories.

“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.”

He added, “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,” he concluded.