Unilever and McCormick strike deal to form US$20B global food powerhouse

Unilever and McCormick have agreed to combine Unilever’s global Foods business with McCormick, creating a significantly larger, flavor‑focused food giant with around US$20 billion in annual revenue and a portfolio spanning herbs, spices, seasonings, sauces, and condiments. The deal brings together leading brands, such as Knorr, Hellmann’s, French’s, Cholula, and Frank’s. 

The British multinational is set to reinvent itself as a pure-play home and personal care business following the divestment, focused on higher‑growth, higher‑margin categories like beauty, well-being, and home care. For US-based McCormick, the deal represents an aggressive move to expand its footprint beyond spices into a broader set of food categories and accelerate global growth.

The combined entity is expected to unlock significant revenue and cost synergies, leveraging Unilever’s distribution strength in regions like EMEA, Latin America, and Asia with McCormick’s market leadership in North America. It also creates a more balanced global foodservice and retail platform capable of competing with other large CPG players.

This merger reflects broader trends in the food and beverage sector: consolidation around strong global brands, focus on flavor and convenience, and portfolio reshaping by major players under pressure from changing consumer habits. It signals that large food companies may be redefining their scope and specialization to maintain growth.

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

Unilever’s transaction strategy and HPC focus

Unilever has confirmed 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. Unilever and Unilever shareholders will receive a proportionate mix of McCormick’s existing voting and non-voting common stock, equating to 65% of the fully diluted combined company equity.

Unilever will also receive US$15.7 billion in cash, subject to certain closing adjustments, that will offset one-off separation and tax costs. The deal excludes Unilever’s foods business in India, Nepal, and Portugal, as well as the Lifestyle Nutrition, Buavita business, and Lipton Ready-to-Drink businesses.Unilever pivots to higher-margin personal care sectors, while retaining a stake in the flavor industry through its merger with McCormick.

“For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy toward high-growth categories as a €39 billion (US$45 billion) pure-play HPC company with a proven sector-leading growth profile,” says Unilever’s CEO, Fernando Fernandez.

“We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavor powerhouse. By combining Unilever Foods’ iconic leading brands and global reach with McCormick’s exceptional portfolio, category expertise, and capabilities, we are establishing a focused, high-quality business with significant top-line growth and value creation potential.”

“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 flavor leader. Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects.”

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.

Unilever backed its global power food brands while reporting fourth-quarter 2025 and full-year 2025 results. The company’s flagship condiment brand, Hellmann’s mayonnaise, helped drive sales growth in the food segment, while Knorr, one of Unilever’s long-standing food brands, and other condiments and cooking aids, showed steady growth in 2025.

Unilever Foods’ portfolio includes a wide array of local brands across EMEA, Latin America, and APAC. The business achieved an underlying sales CAGR of approximately 2.8% over the past two years, supported by consistent volume growth.

However, Unilever has delivered superior performance versus the HPC sector over the last three years, demonstrating its market-making abilities and competitive strengths. The company says that with a sharper focus, it will further strengthen the value creation model for shareholders in this sector.

McCormick reinforces focus on flavor

Unilever Foods has a global portfolio of flavoring and cooking aids, condiments, sauces, and other food products, led by iconic brands Knorr and Hellmann’s, which comprise approximately 70% of sales. Knorr, a household name in more than 90 countries around the world, serves more than five billion consumers worldwide, and Hellmann’s, one of the world's leading mayonnaise brands, reaches consumers in more than 65 countries.

“This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavor,” says Brendan Foley, chairman, president, and CEO at the company. “The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities, and long-term vision.”The merger boosts McCormick’s global reach, reinforcing its focus on flavor and expanding its portfolio beyond spices.

“Together, we will be better positioned to accelerate growth in attractive categories. This combination will create a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them.”

“Unilever Foods’ global portfolio of strong brands, combined with our proven expertise in insight-driven brand-building and integration, will enable us to deliver flavor in new and exciting ways for more consumers, driving significant growth across the combined portfolio and value for all stakeholders.”

McCormick’s 2025 earnings report revealed that its B2B ingredients arm is growing faster and performing better than its retail spice brands. The results point to a broader trend: food manufacturers investing in flavor enhancement to protect margins and drive product differentiation — not as an optional extra.

Post-transaction leadership and business structure

After the transaction is complete, Foley will remain McCormick’s chairman, president, and CEO, while Marcos Gabriel will be the executive vice president and CFO. Executives from both McCormick and Unilever Foods will serve in key leadership roles. Upon closing, Unilever will appoint four of the twelve members of the combined company Board of Directors.

McCormick will maintain its global headquarters in Hunt Valley, Maryland, US, and have an international headquarters in the Netherlands. Unilever Foods has a long-standing presence in the Netherlands, which is home to its R&D capability. McCormick says it views this capability as a core strength of the combined company and intends to maintain this presence in the Netherlands.

The Unilever Board of Directors and McCormick Board of Directors unanimously approved the transaction.