Unilever and McCormick agree $44.8bn foods combination

Unilever has agreed to combine its Foods business with McCormick in a landmark deal that will create a $20bn‑revenue global flavour powerhouse, bringing together brands including Hellmann’s, Knorr, McCormick, Frank’s, Cholula and Maille. The transaction, announced on 31 March 2026, marks one of the most significant strategic shifts in Unilever’s modern history.

Under the agreement, McCormick will acquire most of Unilever Foods — excluding India and certain other territories — through a Reverse Morris Trust, a structure designed to be tax‑free for Unilever and its shareholders. Unilever and its shareholders will receive 65% of the fully diluted equity in the combined company, valued at $29.1bn, alongside $15.7bn in cash to cover separation costs, reduce debt and fund a planned €6bn share buyback programme running from 2026 to 2029.

The deal values Unilever Foods at $44.8bn, reflecting an EV/EBITDA multiple of 13.8x based on 2025 figures. McCormick will contribute both cash and equity, and will remain headquartered in Hunt Valley, Maryland, with an international headquarters established in the Netherlands — the long‑standing home of Unilever’s foods operations.

For Unilever, the separation of its Foods arm is a decisive step in its transformation into a pureplay home and personal care (HPC) business, with €39bn in 2025 revenues and leading positions across beauty, wellbeing, personal care and home care. CEO Fernando Fernandez said the move will create a “simpler, sharper, higher‑growth company” built around science‑led innovation and stronger operational focus.

For McCormick, the combination represents the biggest deal in its history, significantly expanding its footprint in sauces, condiments and meal solutions. The merged business will be led by McCormick’s existing leadership team, with Unilever appointing four of the 12 board members and retaining a 9.9% direct stake in the new entity.

The companies expect the deal to close by mid‑2027, subject to regulatory and shareholder approvals. If completed, the transaction will reshape the global flavour and condiments landscape — and redefine Unilever’s corporate identity for the decade ahead.