US Edition
McCormick buys Unilever’s food business in deal that values it at nearly $45 billion
The $45 billion deal will create a $20 billion food company with Unilever shareholders owning 65%, targeting cost synergies and growth in flavor-driven categories, officials said.
- On Tuesday, McCormick & Company announced an agreement to combine with Unilever's foods division in a Reverse Morris Trust transaction valuing the unit at approximately $45 billion, with $15.7 billion in cash and an expected mid-2027 close.
- Unilever initiated the divestiture to sharpen its portfolio and prioritize higher-growth beauty and personal care categories over food assets. The strategy follows investor pressure to streamline operations and the spin-off of its ice cream business last year.
- Upon closing, Unilever and its shareholders will retain 65% of the combined company's equity, valued at $29.1 billion, while receiving $15.7 billion in cash. The businesses expect to realize approximately $600 million in annual cost savings by year three.
- McCormick CEO Brendan Foley will lead the combined entity, which retains the McCormick name and Hunt Valley, Maryland headquarters. The organization will establish a new international headquarters in the Netherlands to leverage Unilever Foods' R&D capabilities.
- The transaction accelerates food industry consolidation, positioning McCormick to expand its global retail and foodservice footprint. The move reflects a broader trend of consumer-products companies divesting non-core assets to improve long-term competitiveness and growth.
82 Articles
82 Articles
DECRYPTAGE - The merger between the owners of Knorr, Maille, Amora, Ducros and Vahiné will create the world leader in flavours, valued at $65 billion.
Unilever will receive US$ 15.7 billion in McCormick's money, and will form a giant joint with annual revenue of US$ 20 billion
Many brands, one company: Unilever's food division is to merge with US spice manufacturer McCormick. Knorr, Hellmann's Mayonnaise and Cholula-Sauce will be under one roof in the future. It is about higher profitability.
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…
Coverage Details
Bias Distribution
- 43% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
