UPDATE: Unilever confirms McCormick foods deal for $44.8 billion
Unilever PLC on Tuesday confirmed it has agreed to combine its Foods business with McCormick & Company Inc, creating a $20 billion revenue ‘global flavour powerhouse’ and accelerating its shift to a pureplay home and personal care group.
The deal, first flagged earlier in the day, will see Unilever separate its Foods division and merge it with McCormick in a transaction valuing the business at $44.8 billion.
Under the terms, Unilever and its shareholders will receive shares equivalent to 65% of the combined company, alongside $15.7 billion in cash. Unilever itself will retain a 9.9% stake, which it intends to sell down over time.
The agreement confirms earlier reports that the transaction would be structured as a Reverse Morris Trust, designed to be tax-efficient for Unilever and its shareholders.
Following completion, Unilever will become a ‘pureplay’ home and personal care company, with pro-forma annual revenue of around €39 billion, focusing on Beauty, Wellbeing, Personal Care and Home Care.
The combined food business will bring together brands including McCormick, Knorr and Hellmann’s, creating a scaled global platform across condiments, seasonings and cooking aids. The companies expect around $600 million of annual cost synergies by the third year after completion.
Unilever said the deal would unlock value, simplify its portfolio and enhance its growth profile, with the proceeds supporting debt reduction and a planned €6 billion share buyback programme between 2026 and 2029.
Unilever Chief Executive Officer Fernando Fernandez said: ‘This transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a €39 billion pureplay HPC company.’
He added that the combination would create a ‘focused, high-quality business with significant top line growth and value creation potential’.
McCormick Chief Executive Brendan Foley said the deal would ‘accelerate growth in attractive categories’ and create a ‘diversified flavour leader’.
Completion is expected by mid-2027, subject to shareholder and regulatory approvals.
The announcement confirms the outcome of ‘advanced discussions’ disclosed earlier on Tuesday, when Unilever said a deal was imminent.
Copyright 2026 Alliance News Ltd. All Rights Reserved.