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Unilever Foods will join with spice manufacturer McCormick to create a new company, an arrangement which combines two firms which generated US$20 billion in combined 2025 revenue.
Shareholders of Unilever are expected to receive shares equal to 65 per cent of the newly combined company’s equity, equivalent to US$29.1 billion. Unilever will also receive $15.7 billion in cash, according to a press release.
Under the deal, which is expected to close in 2027, Unilever shareholders are expected to own 55.1 per cent of the new company, while McCormick shareholders will own 35 per cent and Unilever is expected to own 9.9 per cent of the outstanding equity.
“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,” Fernando Fernández, chief executive officer of Unilever, said in a press release.
Unilever Foods produces condiments, sauces and other food products, and brands such as Knorr and Hellmann’s, which comprise approximately 70 per cent of sales of the foods division, according to the company.
Combined company earnings approach US$5 billion
“The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision. This combination will create a diversified flavour leader with a robust growth profile that remains differentiated by its focus on flavouring calories while others compete for them,” Brendan Foley, chairman, president and chief executive officer of McCormick said in a release.
McCormick’s portfolio of brands includes McCormick, French’s, Frank’s RedHot, Cholula, Stubb’s, OLD BAY and Lawry’s.
Unilever Foods and McCormick together grew at approximately 2.4 per cent in 2025. McCormick and Unilever Foods had a combined EBITDA of US$4.7 billion and an operating income margin of approximately 21 per cent in 2025, according to a press release.
The combined company will be led by the McCormick CEO and CFO, with senior management representation from Unilever Foods, according to Unilever.
McCormick will maintain its global headquarters in Hunt Valley, Md., and have an international headquarters in the Netherlands. Unilever also has a presence in the Netherlands. Unilever's head office is in London, and it has a Toronto office for its Canadian division. The company started operating in the 1890’s in downtown Toronto with the Lever Brother’s soap factory, it said on its website.
McCormick has received US$15.7 billion in committed bridge financing from Citigroup Global Markets, Goldman Sachs Bank USA and Morgan Stanley Senior Funding. It also intends to fund the cash component of the purchase with cash from its balance sheet and proceeds from new debt issuance, the company said.
Earlier, Kraft Heinz was involved in rumours about a potential deal to combine Unilever’s food division with Kraft Heinz’s condiments business. However, those talks ended, according to the Financial Times.
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