McCormick merges with Unilever's food business
Hellmann's maker Unilever has agreed to spin off and merge its food business with McCormick.
The deal—projected to close mid-2027—values Unilever Foods at $44.8 billion and McCormick at $21 billion.
Brendan Foley, chairman, president and CEO of McCormick, and Marcos Gabriel, executive vice president and chief financial officer, will retain their current roles.
Unilever shareholders will own 55% of the combined company and McCormick shareholders will own 35%. Unilever will own 9.9% of the outstanding equity and receive $15.7 billion in cash.
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The Unilever Foods portfolio includes flavouring and cooking aids, condiments, sauces and other products, with the Knorr and Hellmann’s brands making up 70% of sales. McCormick’s brands include French’s, Frank’s RedHot, Cholula, Stubb’s, Old Bay and Lawry’s.
Executives from both companies will serve in key leadership roles, McCormick said in a press release.
The two companies had confirmed on March 20 that they were engaged in discussions regarding a potential strategic transaction.
McCormick will maintain its global headquarters in Hunt Valley, Maryland, and have an international headquarters in the Netherlands,.
"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,” Foley said in a statement. "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 advisors and our strong partnership will enable us to capture the full value of this opportunity.”
