McCormick & Company, Incorporated and Unilever PLC, announced that they have entered into an agreement to combine McCormick with Unilever’s Foods business excluding India and other excluded businesses1 (“Unilever Foods”), creating a global flavor leader in attractive and high-growth categories with approximately $20 billion in combined fiscal year 2025 revenue.2
Under the terms of the agreement and upon closing of the transaction, Unilever and its shareholders are expected to receive shares equating to 65.0% of the fully diluted combined-company outstanding equity, equivalent to $29.1 billion3 based on McCormick’s one-month volume-weighted average price of $57.84.4 Unilever will also receive $15.7 billion in cash, subject to certain closing adjustments. This implies an Enterprise Value for Unilever Foods of approximately $44.8 billion, or approximately 13.8x fiscal year 2025 EBITDA.5 In addition, this reflects an enterprise value for McCormick of approximately $21.0 billion, or approximately 13.8x fiscal year 2025 EBITDA.6
Upon closing of the transaction, Unilever shareholders are expected to own 55.1%, McCormick shareholders will own 35.0% and Unilever is expected to own 9.9% of the fully diluted combined-company outstanding equity. The transaction is not expected to give rise to U.S. federal income tax for Unilever or its shareholders, thereby mitigating some of the overall tax costs associated with the transaction.
The combination brings together two industry-leading organizations with complementary global footprints and portfolios of iconic brands across herbs, spices, seasonings, cooking aids, condiments and sauces. The combined company is expected to benefit from expanded global reach, enhanced scale across retail and foodservice channels and greater resources to invest in innovation, brand-building and global distribution.
Brendan Foley, Chairman, president and chief executive officer of McCormick, said, “This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavor. The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision. 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.”
Fernando Fernández, chief executive officer of Unilever, said, “For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a €39 billion pureplay HPC company with a proven sector-leading growth profile. 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.”
Unilever Foods’ assets are a highly complementary fit with McCormick’s portfolio of iconic brands, which include McCormick, French’s, Frank’s RedHot, Cholula, Stubb’s, OLD BAY and Lawry’s, and its 137-year history of flavoring foods for every cuisine and trend. In addition to retail and branded foodservice offerings, McCormick develops custom flavors and condiments for customers as well as its own products within its Flavor Solutions segment.
– Advances growth in attractive categories: Unilever Foods and McCormick bring together a portfolio of global, well-invested iconic leading brands, breakthrough brands and local favorites across developed and emerging regions. The combined company will have a deepened focus on flavoring and enhancing foods across categories with attractive consumer tailwinds, including increased protein consumption and cooking at home.
– Unlocks revenue synergies across McCormick and Unilever Foods businesses: The combination is positioned to unlock new regions, flavors, innovation and consumption occasions in both retail and foodservice channels across the combined business. McCormick’s brands will benefit from greater access to high-growth regions in EMEA, Latin America and APAC served by Unilever Foods’ extensive infrastructure and distribution. Unilever Foods’ brands will have an enhanced strategic runway for growth in North America, where McCormick has a stronger profile and capabilities.
– Creates a leading global foodservice platform: The combined company will benefit from a combined foodservice platform with broad global distribution capabilities and customer recognition, supported by McCormick’s front-of-house strength and Unilever Foods’ chef-led, back-of-house strength. Together, the combined foodservice platform will have approximately $6 billion in fiscal year 2025 combined company sales.8
– Combines differentiated technical expertise: McCormick is committed to remaining a flavor focused business and will integrate and leverage Unilever Foods’ technology capabilities, R&D centers and manufacturing footprint. The total breadth of flavor insights, advanced technology and technical expertise across R&D, marketing and supply chain will further strengthen resources to drive acceleration in innovation and product development for the combined company and its customers.
Builds on McCormick’s history of accretive M&A and brand-building: McCormick has a successful history of integrating leading flavor brands and investing in and accelerating their performance, including Lawry’s, Cholula, French’s and Red Hot. In these cases, the McCormick team achieved accretion to growth, synergies and earnings targets while enhancing brand equity and consumption growth for the brands.
– Unites two culturally aligned, purpose-led organizations: The combination is founded in exceptional talent, technology and capabilities from two successful organizations with complementary geographic expertise. McCormick and Unilever share a commitment to conducting business with high ethical standards and social responsibility, and these values will continue to guide operations at the combined company.
1 Transaction excludes Unilever’s food business in India, Nepal and Portugal; its Lifestyle & Nutrition business; its Buavita business; and its Lipton Ready-to-Drink business (together, the “Excluded Businesses”).
2 Combined sales figure represents McCormick’s net sales for the fiscal year ended November 30, 2025, and Unilever Foods’ net sales for the fiscal year ended December 31, 2025. Unilever Foods’ financials based on 2025 reported financials, prepared under IFRS adjusted for the separated Foods business and translated from EUR to USD at the Unilever 2025 average rate of 1.124.
3 Equivalent to ~€25.3bn based on spot exchange rates of approximately 1.15 as of 03/27/26.
4 For ‘MKC’ stock. One-month volume-weighted average price of $58.89 for ‘MKC.V’ stock. As of 03/27/26. Per Bloomberg.
5 Based on Unilever management estimates of EBITDA (Underlying EBITDA defined as net income plus expenses for interest, income taxes, depreciation, amortization and non-underlying items within operating profit) of ~€2.8bn for the fiscal year ended December 31, 2025.
6 Based on McCormick management estimates of EBITDA (operating income plus depreciation and amortization) of ~$1.5bn for the fiscal year ended November 30, 2025, including adjustment to include McCormick de Mexico earnings for 2025. See “Non-GAAP and Other Financial Information” for discussion of inclusion of McCormick de Mexico earnings.
7 CAGR excludes Unilever Foods’ Excluded Businesses.
8 Reflects McCormick including McCormick de Mexico and Unilever Foods excluding Excluded Businesses based on 2025 reported financials, prepared under IFRS adjusted for the separated Foods business and translated from EUR to USD at the Unilever 2025 average rate of 1.124. See “Non-GAAP and Other Financial Information” for discussion of inclusion of McCormick de Mexico earnings.
9 Reflects McCormick including McCormick de Mexico and Unilever Foods excluding Excluded Businesses based on 2025 reported financials, prepared under IFRS adjusted for the separated Foods business and translated from EUR to USD at the Unilever 2025 average rate of 1.124. See “Non-GAAP and Other Financial Information” for discussion of inclusion of McCormick de Mexico earnings.
10 Reflects McCormick including McCormick de Mexico and Unilever Foods excluding Excluded Businesses based on 2025 preliminary carve-out financial information, prepared under IFRS and translated from EUR to USD at the Unilever 2025 average rate of 1.124. See “Non-GAAP and Other Financial Information” for discussion of inclusion of McCormick de Mexico earnings.