Knorr, Hellmann’s, Maille and Frank’s will sit under McCormick’s roof in a transaction that marks Unilever’s exit from food manufacturing and the second-largest food deal in history.
Unilever has agreed to combine its foods division with US spice and condiments giant McCormick & Company in a deal that values the Unilever Foods business at $64.8 billion (US$44.8 billion).
The transaction is the second-largest food deal in history and represents a decisive exit by Unilever from food manufacturing after more than 160 years in the sector.
The combined company will carry the McCormick name and be led by McCormick CEO, Brendan Foley, with the Hunt Valley, Maryland global headquarters retained.
Unilever will appoint four of 12 board seats. McCormick will establish an international headquarters in the Netherlands, home to Unilever Foods’ world-leading R&D operations and is planning a secondary listing in Europe alongside its existing NYSE listing.
The deal is structured as a Reverse Morris Trust transaction, intended to be tax-free for US federal income tax purposes. McCormick will pay Unilever $15.7 billion in cash, funded through a combination of balance sheet cash and new debt, backed by committed bridge financing from Citigroup, Goldman Sachs and Morgan Stanley.
Unilever and its shareholders will receive shares equating to 65 per cent of the fully diluted combined company equity – with Unilever itself retaining a 9.9 per cent stake it intends to sell down over time, no earlier than one year post-close. McCormick shareholders will hold the remaining 35 per cent.
The combined business will generate revenues of approximately $29 billion (US$20 billion) based on FY25 data, bringing together McCormick’s portfolio of spices, seasonings and hot sauces – including French’s, Frank’s RedHot, Cholula, Old Bay and Lawry’s – with Unilever Foods’ stable of household brands.
Knorr and Hellmann’s alone account for roughly 70 per cent of Unilever Foods’ sales; Knorr is present in more than 90 countries and serves over five billion consumers worldwide.
For Unilever, the divestment is the centrepiece of a portfolio simplification strategy accelerated under CEO, Fernando Fernandez, who took the helm in March 2025.
The company completed the spin-off of its ice cream business – home to Magnum, Ben & Jerry’s and Breyers – in December 2025.
Following the McCormick transaction, Unilever will operate as a pure-play household and personal care company across Beauty, Wellbeing, Personal Care and Home Care, with pro-forma revenues of €39 billion and a compound annual underlying sales growth rate of 5.4 per cent over the past three years.
Fernandez framed the deal in terms of releasing value that had been constrained within a diversified portfolio. “We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavour powerhouse. This is a combination built on strong strategic and cultural alignment, providing exciting opportunities for our people and ensuring our Foods brands continue to thrive as part of a global flavour leader,” Fernandez said.
For McCormick, the deal nearly triples the company’s revenue base and extends its reach significantly into condiments and cooking aids – categories it has been building toward for years.
Foley said the Unilever Foods business was one McCormick had “long admired” and had been thinking about a potential combination for “a number of years”.
The combined company expects to realise approximately US$600 million in annual run-rate cost synergies net of growth reinvestments by the end of year three, with a further US$100 million in incremental cost and revenue synergies to be reinvested in growth. Net leverage at closing is expected to be 4.0x or below, returning to 3.0x within two years.
The transaction excludes Unilever’s food operations in India. It has been unanimously approved by both boards and is subject to McCormick shareholder approval and customary regulatory clearances, with close expected by mid-2027. Works Council consultation will also be conducted prior to closing.
The deal is the latest in a wave of packaged food consolidation as companies contend with shifting consumer preferences and cost pressures. Mars acquired Kellanova in 2024; Ferrero acquired WK Kellogg; and both Keurig Dr Pepper and Kraft Heinz have moved to restructure or unwind earlier combinations.
