US EditionMcCormick buys Unilever’s food business in deal that values it at nearly $45 billion
The $45 billion deal will create a $20 billion food company with Unilever shareholders owning 65%, targeting cost synergies and growth in flavor-driven categories, officials said.
- On Tuesday, McCormick & Company announced an agreement to combine with Unilever's foods division in a Reverse Morris Trust transaction valuing the unit at approximately $45 billion, with $15.7 billion in cash and an expected mid-2027 close.
- Unilever initiated the divestiture to sharpen its portfolio and prioritize higher-growth beauty and personal care categories over food assets. The strategy follows investor pressure to streamline operations and the spin-off of its ice cream business last year.
- Upon closing, Unilever and its shareholders will retain 65% of the combined company's equity, valued at $29.1 billion, while receiving $15.7 billion in cash. The businesses expect to realize approximately $600 million in annual cost savings by year three.
- McCormick CEO Brendan Foley will lead the combined entity, which retains the McCormick name and Hunt Valley, Maryland headquarters. The organization will establish a new international headquarters in the Netherlands to leverage Unilever Foods' R&D capabilities.
- The transaction accelerates food industry consolidation, positioning McCormick to expand its global retail and foodservice footprint. The move reflects a broader trend of consumer-products companies divesting non-core assets to improve long-term competitiveness and growth.
100 Articles
100 Articles
Unilever’s Grocery Deal with McCormick Draws Sour Reaction from Investors
Anglo-Dutch multinational Unilever agreed Tuesday to combine its food division with spice maker McCormick. The cash-and-stock deal would create a company with roughly $20 billion in annual revenue and a pantry’s worth of brands, including French’s mustard, Hellmann’s mayonnaise, Old Bay seasoning and Knorr soup mixes. Investors are not biting. Shares in Unilever fell 7.3% in London, and McCormick sank 6.3% in New York, erasing billions in market…
Iconic British staples Marmite, Bovril and Colman's mustard sold to American firm in £50billion deal
Marmite, the British spread that has divided opinion for decades, is set to move into American ownership following a £50billion transaction announced today.Unilever has agreed to sell a portfolio of food brands to McCormick & Company in one of the largest deals in the sector in recent years.The acquisition includes a number of well-known household products, including Colman's mustard, Bovril, Hellmann's mayonnaise, Knorr and Pot Noodle.These bra…
In a $45 Billion Deal, McCormick Is Buying Unilever's Food Business. Is This a Good Strategic Move for the Spice Giant?
Key PointsMcCormick is combining with Unilever's food business. The massive deal will enhance its scale, diversification, margins, and growth rates. It also brings meaningful risks. 10 stocks we like better than McCormick › McCormick (NYSE: MKC) is spicing up its flavor profile. The global spice giant has agreed to combine with Unilever's (NYSE: UL) food business in a nearly $45 billion deal. It's a huge bite for the much smaller McCormick. Here…
Coverage Details
Bias Distribution
- 44% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
