Unilever has agreed to merge most of its food business with McCormick & Company in a deal valued at $44.8 billion, forming a major global player in condiments and seasonings.
Under the agreement, McCormick will pay $15.7 billion in cash along with $29.1 billion in shares to acquire Unilever’s food portfolio, which includes popular brands like Hellmann’s and Knorr. However, certain assets are excluded from the deal, such as Lipton’s ready-to-drink beverages, Buavita juices, lifestyle nutrition products, and food operations in India, Portugal, and Nepal.
The combined business, which will operate under the McCormick name, is expected to generate around $20 billion in annual revenue. The transaction is projected to close by mid-2027.
Following the merger, Unilever shareholders will own 55.1% of the new company, while Unilever itself will initially retain a 9.9% stake, to be gradually reduced over time. The companies anticipate achieving approximately $600 million in annual cost savings by the third year.
McCormick will continue to be headquartered in Hunt Valley, Maryland, while also establishing an international headquarters in the Netherlands and securing a secondary listing in Europe. CEO Brendan Foley will lead the combined entity, with leadership drawn from both organizations. Unilever will also nominate one-third of the board members.
This deal represents a strategic shift for Unilever, as it steps back from much of its food business to focus more on higher-margin personal care products. The move follows its earlier spin-off of the Magnum Ice Cream Company, which includes brands like Ben & Jerry’s, Talenti, and Klondike.
For McCormick, the acquisition marks its largest-ever deal and aligns with its growth strategy of expanding into high-growth flavor categories such as hot sauces and condiments. Building on past acquisitions like French’s and Frank’s RedHot, the company aims to scale brands such as Cholula and Maille through innovation and global expansion.
Overall, the merger is positioned as a mutually beneficial move, enabling both companies to sharpen their strategic focus, enhance growth opportunities, and create long-term value.