McCormick to absorb Unilever Foods in $44.8 billion deal to form global taste giant

McCormick & Company has agreed to combine with Unilever's food division in a Reverse Morris Trust transaction valued at $44.8 billion. The deal creates a flavor entity with $20 billion in annual revenues while transitioning Unilever into a pure-play consumer care business.

According to official disclosures, McCormick & Company has entered into a definitive agreement to merge with the food division of Unilever in a transaction valuing the unit at approximately $44.8 billion. Unilever is a British multinational consumer goods company operating across beauty, personal care, home care, and nutrition. Under the deal terms, Unilever and its shareholders will receive 65% of the combined entity's equity, alongside $15.7 billion in cash. The deal is expected to close by mid-2027, subject to regulatory approvals and McCormick shareholder consent. This transaction represents a massive structural shift for both companies. By offloading its food arm, Unilever completes its strategic pivot toward becoming a pure-play health, personal care, and home care corporation with projected revenues of €39 billion.

For McCormick, the acquisition instantly scales its global footprint, merging its signature spice business with major condiment and cooking brands. This consolidation carries heavy implications for the global food and beverage sector. The combined entity will command massive retail and food service distribution networks, yielding heightened negotiating leverage with grocers and supply chains. Additionally, it highlights the trend of multinational conglomerates splitting food and non-food operations to satisfy investors seeking pure-sector exposure. For institutional investors, the deal structure minimizes tax leakages while funding significant shareholder returns. Unilever plans to deploy €6 billion for share buybacks between 2026 and 2029. Meanwhile, the combined food company expects to leverage its scale to maintain an investment-grade credit rating while aggressively paying down its initial 4.0x net leverage post-closing.