McCormick Acquires Unilever Foods for $44.8B in Landmark Deal

McCormick & Company announced on March 31, 2026, that it will acquire Unilever's food division in a deal valued at US$44.8 billion, creating a combined company with approximately US$20 billion in annual revenue.

Deal Structure and Ownership Split

The transaction combines US$15.7 billion in cash with US$29.1 billion in McCormick shares. After closing, Unilever shareholders will hold 65% of the combined company, while McCormick shareholders retain 35%. Unilever will also keep a 9.9% stake in each class of equity for an orderly sell-down.

Southeast Asia PE Deal Value Plummets 43% to $9.1B in 2025

PE deal value in Southeast Asia crashed 43% to $9.1B in 2025 as geopolitical uncertainty forces investors toward smaller, more selective bets.

Mission MediaMission Media

The combined entity will retain the McCormick name and its Maryland headquarters. An international headquarters will be established in the Netherlands to maintain European stakeholder confidence. The deal is structured as a Reverse Morris Trust, a legal arrangement designed to avoid U.S. federal income tax for Unilever and its shareholders.

Unilever CEO Fernando Fernandez described the divestiture as "another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories." Following the close, Unilever will redirect its focus to its home and personal care business, valued at approximately €39 billion.

McCormick Chairman, President, and CEO Brendan Foley said the Unilever Foods business is "one we have long admired," adding that the combined entity will be "differentiated by its focus on flavoring calories while others compete for them."

Knorr and Hellmann's at the Center of Brand Communications

The deal brings two of the world's most recognized food brands into the McCormick portfolio. Knorr operates across 90-plus countries, serving five billion consumers. Hellmann's holds market leadership in 65-plus countries. Together, the two brands account for 70% of Unilever Foods' sales.

The transaction explicitly excludes Unilever's food operations in India, Nepal, and Portugal, as well as Lipton Ready-to-Drink beverages, Buavita juices, and lifestyle nutrition assets. Each excluded market requires separate communications to employees, retail partners, and consumers.

Strategic communications firm Teneo is advising Unilever on the deal, building on a partnership that began in 2017. FTI Consulting is serving as McCormick's communications partner. Sources familiar with the transaction confirmed both firms' roles.

McCormick's Acquisition History and Financial Targets

The Unilever deal is the largest in McCormick's history and the second-largest food industry transaction ever recorded, behind only the 2015 Kraft Heinz merger. The deal is priced at 13.8x FY2025 EBITDA.

McCormick has pursued a series of brand acquisitions in recent years. It acquired Frank's RedHot and French's mustard from Reckitt Benckiser for US$4.2 billion in 2017, and purchased Cholula hot sauce for US$800 million in 2020.

The combined company is targeting US$600 million in annual cost savings by year three, alongside US$6 billion in foodservice sales. Based on FY2025 earnings, the combined revenue of both businesses stands at approximately US$20 billion.

Regulatory Timeline and Next Steps

The deal received unanimous board approval on March 31, 2026. Closing is expected in mid-2027, pending regulatory and shareholder approvals. Unilever will appoint four of 12 board seats in the combined entity, while Brendan Foley will serve as Chairman, President, and CEO.

Unilever has also announced plans for €6 billion in share buybacks between 2026 and 2029. The company will maintain a secondary listing in Europe following the transaction close.