A merging of flavours: Unilever Foods and McCormick

Unilever has confirmed that it will merge its Foods business with McCormick, in a transaction which implies an enterprise value for Unilever’s Foods business of approximately US$44.8 billion.

After the completion of the transaction, the combined company will have a portfolio of brands, including McCormick, Knorr and Hellmann’s, across herbs, spices, seasonings, cooking aids, sauces and condiments. High-growth potential brands such as Cholula, Maille and Frank’s will also be included.

The combined company will be led by the McCormick CEO and CFO, with senior management representation from Unilever Foods. Bringing together complementary geographic footprints and a global leading presence across both retail and food service channels, the company will also have combined science and R&D capabilities to meet demand for flavour.

After the separation of its Foods business, Unilever will concentrate on its €39 billion pureplay HPC company, consisting of Beauty, Wellbeing, Personal Care and Home Care portfolios.

Fernando Fernandez, Chief Executive Officer of Unilever, said the transaction was “unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavour powerhouse”.

“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,” Fernandez added.

Brendan Foley, Chief Executive Officer of McCormick, said: “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.”

McCormick will establish international headquarters in the Netherlands and is planning a secondary listing in Europe.

Completion is expected by mid-2027, subject to McCormick shareholder approval, receipt of required regulatory approvals and the satisfaction of other customary closing conditions.

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