McCormick & Company entered definitive agreements with Unilever on 31 March to combine with Unilever's foods business in a deal valued at US$44.8bn, creating a flavour-focused group with about US$20bn of combined 2025 revenue.
Why McCormick & Company is buying Unilever Foods
McCormick said the combination would create a global flavour company in high-growth categories, with a 21% operating margin and strong cash generation. It has targeted about US$600m of annual cost savings by the end of the third year.
Deal terms and financing
Unilever will transfer the foods business to a new company that is distributed to its shareholders and merged into McCormick, a structure intended to be tax-free for US federal purposes. Unilever receives US$15.7bn in cash and keeps a 9.9% stake, subject to a one-year lock-up and a five-year sell-down. McCormick keeps its name, its Maryland headquarters and its NYSE listing, and adds an international headquarters in the Netherlands.
Regulatory approvals and timing
Completion requires McCormick shareholder approval, US antitrust clearance and other merger control and foreign investment approvals. The UK Competition and Markets Authority opened an invitation to comment in July, according to Grocery Gazette. In its third-quarter results on 1 October McCormick said filings had been submitted on schedule across jurisdictions and that closing was still expected by mid-2027.
Market context
The two companies had confirmed talks on 20 March. The excluded businesses include Unilever's foods operations in India, Nepal and Portugal, its Lifestyle & Nutrition unit, Buavita and Lipton ready-to-drink tea.
