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McCormick buys Unilever’s food business in deal that values it at nearly $45 billion
McCormick will pay $15.7 billion in cash and gain majority equity in a $45 billion Reverse Morris Trust deal to expand its global flavor portfolio and scale.
- On Tuesday, McCormick & Company announced an agreement to acquire most of Unilever's food business in a transaction valued at approximately $44.8 billion, including $15.7 billion in cash. The deal is expected to close by mid-2027, pending regulatory and shareholder approvals.
- Unilever initiated the divestiture to sharpen its strategic focus on higher-growth beauty and personal care categories following years of investor pressure to streamline its portfolio. The company previously spun off its ice cream business, now the Magnum Ice Cream Company, to refocus operations.
- Structured as a tax-free Reverse Morris Trust, the merger gives Unilever shareholders a 65% stake in the combined entity. Both companies expect to realize approximately $600 million in annual cost synergies by the end of year three.
- McCormick CEO Brendan Foley will lead the combined company, which retains its Hunt Valley, Maryland, headquarters while establishing international operations in the Netherlands. The acquisition integrates iconic brands Hellmann's and Knorr into McCormick's global portfolio.
- This transaction underscores a broader industry trend of consolidation as legacy food companies seek growth through scale amid shifting consumer preferences. Analysts note the move reflects McCormick's strategy to expand presence in fast-growing flavor-driven categories.
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66 Articles
66 Articles
London, UK. Unilever, a British food and hygiene company, announced on Tuesday that it will leave its food division, which will merge with the US group McCormick & Company, in an agreement valued at several billions of dollars.The new entity will gather under one roof the soups Knorr, Maille mustard and Hellmann’s Mayonnaise, from Unilever, and the spices Ducros, the ingredients for pastry Vahiné and the mustard French’s, from McCormick.This fus…
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Total News Sources66
Leaning Left13Leaning Right9Center20Last UpdatedBias Distribution48% Center
Bias Distribution
- 48% of the sources are Center
48% Center
L 31%
C 48%
R 21%
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