Unilever reveals McCormick could acquire its food division today

Unilever has announced that spice manufacturing leader McCormick could agree to acquire its food business, which includes iconic brands like Hellmann’s, Knorr, Marmite, and Colman’s, today. 

“The company is now in advanced discussions with McCormick & Company regarding a potential transaction. Work remains ongoing to agree and finalize a transaction, and it is possible that an agreement could be concluded today, although there can be no certainty that a transaction will be agreed,” Unilever said in a statement.

“If a transaction were to proceed, it is currently contemplated that it would involve a combination of Unilever Foods (excluding parts of its Foods portfolio, such as its business in India) with McCormick, with an upfront cash component of approximately US$15.7 billion and the majority of the consideration in McCormick equity.”

“Upon completion of the transaction, it is expected that Unilever and its shareholders would hold 65% of the combined company.”

On March 20, Unilever confirmed it had received an offer from McCormick for its food division, in what could be one of the largest food industry deals in years.

A tax-free transaction strategy

Unilever confirms in the statement that the transaction would be undertaken by a Reverse Morris Trust, which is intended to be tax-free for US federal income tax to Unilever and its shareholders. Full terms will be announced if a deal is reached.

The FMCG giant adds that full terms will be announced if a transaction is agreed.

Unilever’s food division posted turnover of €12.9 billion (US$14.3 billion) in 2025, while McCormick has a market capitalization of around US$14.5 billion, according to LSEG data cited by Reuters.

Barclays analyst Warren Ackerman estimates the enterprise value of Unilever’s food business at roughly €30 billion (US$33.4 billion), based on its operating profit of €2.9 billion (US$3.34 billion) last year. The target is substantially larger than the buyer, which is why a Reverse Morris Trust structure, in which Unilever shareholders would retain a majority stake in the combined entity, is the likely outcome.

A combination would bring together McCormick’s sauce and seasoning portfolio with Unilever’s Hellmann’s and Knorr — which together account for roughly 60% of the food division’s revenue — creating a condiments and flavor powerhouse with a presence across retail, foodservice, and B2B ingredient supply.

Under CEO Fernando Fernandez, Unilever has been pivoting toward beauty, personal care, and well-being — higher-margin categories that generated more than double the food division’s turnover in 2025. The company completed the demerger of its ice cream division into The Magnum Ice Cream Company in December 2025, and has already offloaded Graze, The Vegetarian Butcher, Unox, and Zwan.