McCormick and Unilever to Form $20 Billion Flavour Company

In a move that will shake up the world of sauces and spices, McCormick & Company and Unilever have agreed to merge McCormick with Unilever’s food business. The deal is worth $44.8 billion and will create a single $20 billion company built around making and selling flavour products.

For the global food industry — especially those working with tomatoes and fresh produce — this merger shows how quickly the market is being taken over by a few big players. The new company will bring together a hard-to-beat collection of well-known brands, including McCormick, Knorr, Hellmann’s, French’s, Frank’s RedHot, Cholula, and Maille. By combining the world’s top cooking sauces and dressings with the biggest spice and seasoning network, the new company aims to lead the flavour market in both shops and restaurants.

Brendan Foley, CEO of McCormick, said: “This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavour. Together, we will be better positioned to accelerate growth in attractive categories, creating a diversified flavour leader with a robust growth profile that remains differentiated by its focus on flavouring calories while others compete for them. Unilever Foods’ global portfolio of strong brands, combined with our proven expertise in insight-driven brand-building, will enable us to deliver flavour in new and exciting ways for more consumers.”

The deal is also a big turning point for Unilever, which will become a focused €39 billion company in health, personal care, and home care. Even though Unilever is selling off its food business, it is keeping a 9.9% share in the new company — a sign that it still believes in the long-term value of combining McCormick’s know-how with Unilever’s reach across Europe, Latin America, and Asia.

Fernando Fernandez, CEO of Unilever, said: “We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavour powerhouse. 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. This is a combination built on strong strategic and cultural alignment, providing exciting opportunities for our people.”

The deal is set up using a tax-efficient structure called a Reverse Morris Trust. Once completed, Unilever shareholders will own 55.1% of the new company, while McCormick shareholders will own 35.0%. As part of the agreement, Unilever will receive $15.7 billion in cash, which it plans to use to buy back €6 billion worth of its own shares by 2029. The new company expects to cut costs by $600 million per year within three years, with $100 million of that set aside to invest back into new products and expanding into new markets.

Brendan Foley will serve as CEO and Marcos Gabriel as CFO, with senior leaders from Unilever Foods also joining the team. The main headquarters will stay in Hunt Valley, Maryland, but the company will also set up an international office in the Netherlands, which will be home to key research and product development work. The deal is expected to close by mid-2027, subject to approval from regulators and shareholders.

Sources: Unilever, McCormick