Unilever to Fold Food Unit Into McCormick in $44.8 Billion Deal

Overview

• Unilever and McCormick agreed a $44.8 billion combination of most of Unilever’s food business, with both boards giving unanimous approval and Unilever and its investors set to own 65% at closing.
• McCormick will pay $15.7 billion in cash plus $29.1 billion in stock, creating a roughly $20 billion‑revenue company that keeps Brendan Foley as CEO at the Hunt Valley, Maryland headquarters.
• The transaction uses a Reverse Morris Trust, a U.S. spin‑merge structure that aims to be tax efficient and does not require a Unilever shareholder vote, with closing targeted for mid‑2027 pending McCormick investor approval.
• Hellmann’s and Knorr move into the combined company, while the deal excludes Unilever operations in India, Nepal, Portugal and its lifestyle nutrition, Buavita juice and Lipton ready‑to‑drink beverages, and Unilever plans to sell down its remaining stake over time.
• Investors sold after the announcement, with McCormick shares down as much as 10% and Unilever nearly 5%, as an RBC analyst questioned whether this is the smoothest path to a pure personal and home care company.