Unilever Plc has agreed to merge a significant portion of its food business with U.S.-based spice and flavouring company McCormick & Company in a landmark transaction valued at $44.8 billion, marking a major strategic shift for both organisations.
Under the terms of the agreement, Unilever will receive $15.7 billion in cash along with McCormick shares worth $29.1 billion. Following the transaction, Unilever and its shareholders will hold a 65% stake in the combined entity, which is set to emerge as a global leader in the seasonings and condiments space.
The deal will be executed through a Reverse Morris Trust, enabling a tax-efficient separation and merger of the businesses
This transaction effectively separates Unilever’s long-standing food division from its core operations, accelerating its pivot toward higher-growth segments such as beauty, personal care, and home care.
For McCormick, the merger significantly enhances scale and global reach, combining complementary portfolios across spices, condiments, and cooking products. The newly formed entity is expected to generate approximately $20 billion in annual revenue based on recent financial performance.
Unilever’s association with the food category spans nearly a century, with a portfolio that includes iconic global and regional brands such as Hellmann’s, Maille, and Marmite.
However, the packaged food sector has faced sustained pressure in recent years, driven by subdued consumer spending, increasing competition from private labels, and a shift toward fresher, less-processed food choices.
Notably, the agreement excludes certain parts of Unilever’s food business, including its operations in India, indicating a selective and strategic carve-out rather than a complete exit from the category.
The timing of the deal reflects broader structural changes in consumer behaviour, including rising demand for fresh food, value-driven purchasing, and evolving dietary habits. Additionally, the growing adoption of GLP-1 weight-loss treatments has begun to influence consumption patterns across food categories.
Fernando Fernandez, Chief Executive Officer of Unilever, has reiterated that the company’s future growth will be anchored in faster-growing segments such as beauty, personal care, and wellbeing.
For McCormick, the transaction represents a transformative expansion, providing access to a broader global footprint and strengthening its leadership in flavour, seasoning, and condiments. The combined platform is expected to unlock synergies, enhance innovation capabilities, and drive long-term growth.
