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The combination of Unilever Foods and McCormick aims to create a scaled, global flavor powerhouse, bringing together two industry-leading, culturally-aligned foods businesses with strong momentum, superior top line growth and enhanced value creation. The combined business will house the brands McCormick, Knorr and Hellmann’s, and high growth potential brands including Cholula, Maille and Frank’s, as part of a global portfolio with revenues of $20 billion, based on fiscal year 2025 data.
The separation of Unilever Foods will position Unilever as a leading pureplay HPC company, with €39 billion of based on fiscal year 2025 and a sector-leading growth profile. Post-completion, Unilever will operate across Beauty, Wellbeing, Personal Care and Home Care, with leading positions in attractive categories, fast-growing geographies and channels through a portfolio of high-performing, innovative brands.
The Transaction is another decisive step to reshape Unilever into a simpler, sharper, higher growth company, built upon synergistic capabilities across science-led innovation, demand creation and revenues operational execution. Unilever has delivered superior performance versus the HPC sector over the last three years, demonstrating the Company’s market making abilities and competitive strengths, which, with even sharper focus, will further strengthen the value creation model for shareholders.
In this Transaction, Unilever and Unilever shareholders will receive a proportionate mix of McCormick’s existing voting and non-voting common stock, equating to 65.0% of the fully diluted combined company equity, equivalent to $29.1 billion based on the last 1-month volume-weighted average McCormick share price of $57.84. Unilever will also receive $15.7 billion in cash, subject to certain closing adjustments, that will offset one-off separation and tax costs; pay down debt to its current level of c.2.0x net debt to EBITDA following closing; and support €6 billion of share buy-backs expected to run between 2026 and 2029.
The Transaction reflects an enterprise value of $44.8 billion for Unilever Foods, equivalent to an EV/Sales ratio of 3.6x and a 13.8x EV/EBITDA multiple based on the last 1-month volume-weighted average McCormick share price of $57.84 which is in line with the current trading multiple for Unilever, and in line with the most attractive foods company valuations.
Combining McCormick and Unilever Foods
Upon closing, the Transaction will create two focused, faster-growing businesses in McCormick and Unilever, each better aligned to its categories, capabilities and value creation model.
The combination of Unilever’s Foods business with McCormick will create a global flavor powerhouse anchored in a portfolio of iconic brands across herbs, spices, seasonings, cooking aids, sauces and condiments. It will bring together complementary geographic footprints and a global leading presence across both retail and food service channels, with deep science and R&D capabilities to meet consumers’ growing demand for flavor.
The combined company will have a distinctive, attractive profile within the foods industry, with leading positions in growth categories and a quality financial model of superior growth, supported by strong gross margins and continuous elevated brand investment.
McCormick provides a natural home for Unilever Foods, given cultural alignment between the two companies, and a proven track record of successfully integrating acquired brands and investing behind them to accelerate growth.
The combined company will be led by the McCormick CEO and CFO, with senior management representation from Unilever Foods.
McCormick will retain its existing name; its Hunt Valley, Maryland global headquarters and NYSE listing. McCormick will establish international headquarters in the Netherlands and is planning a secondary listing in Europe.