Unilever plc and McCormick company have announced an agreement to combine Unilever’s Foods business with McCormick in a transaction valued at approximately $44.8 billion, creating what both companies describe as a scaled global flavour powerhouse that will house some of the world’s most iconic food brands under one roof.

According to the statement on Unilever website, the combination will bring together leading brands including Knorr, Hellmann’s and McCormick, alongside high growth potential brands such as Cholula, Maille and Frank’s, as part of a global portfolio with revenues of $20 billion based on fiscal year 2025 data. The deal, which has been unanimously approved by the boards of both companies, is expected to close by mid-2027 subject to McCormick shareholder approval and the receipt of required regulatory clearances.

Under the terms of the agreement, Unilever and its shareholders will receive shares equating to 65 percent of the fully diluted combined company equity, valued at approximately $29.1 billion. Unilever will also receive $15.7 billion in cash, which according to the company will be used to offset separation and tax costs, pay down debt to approximately 2.0 times net debt to EBITDA and support six billion euros in share buybacks expected to run between 2026 and 2029. At closing, Unilever shareholders will own 55.1 percent of the combined company, McCormick shareholders will own 35 percent and Unilever will retain a 9.9 percent stake.

According to Unilever, the separation of its Foods business will position the company as a leading pure-play Home and Personal Care company with revenues of approximately 39 billion euros based on fiscal year 2025. Following the transaction, Unilever will operate exclusively across Beauty, Wellbeing, Personal Care and Home Care, with Beauty, Wellbeing and Personal Care contributing approximately 67 percent of Group turnover compared to 51 percent in fiscal year 2025.

Fernando Fernandez, Chief Executive Officer of Unilever, described the transaction as another decisive step in sharpening the company’s portfolio. “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,” he said.

Brendan Foley, Chief Executive Officer of McCormick, said the combination accelerates McCormick’s strategy and reinforces its focus on flavour. “The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision. Together, we will be better positioned to accelerate growth in attractive categories,” he said. Foley will serve as Chairman, President and Chief Executive Officer of the combined company upon closing, with Marcos Gabriel continuing as Executive Vice President and Chief Financial Officer.

According to Unilever, the combined company expects to realise approximately $600 million in annual run rate cost synergies net of growth reinvestments, with full value expected to be achieved by the end of year three. An additional $100 million in incremental cost and revenue synergies will be reinvested to further drive growth. The combined company’s net leverage upon closing is expected to be 4.0 times or less, with a return to 3.0 times net debt within two years.

The transaction is structured as a tax-efficient Reverse Morris Trust arrangement, which Unilever says is intended to be tax-free for United States federal income tax purposes for both Unilever and its shareholders, thereby mitigating a significant portion of the overall transaction related tax costs. McCormick has secured $15.7 billion in committed bridge financing from Citigroup Global Markets, Goldman Sachs Bank USA and Morgan Stanley Senior Funding to fund the cash component of the transaction.

According to Unilever, McCormick will retain its existing name and its global headquarters in Hunt Valley, Maryland, while maintaining its New York Stock Exchange listing. The combined company will establish international headquarters in the Netherlands, where Unilever Foods has a longstanding presence including world-leading research and development capabilities. McCormick is also planning a secondary listing in Europe. Senior management representation from Unilever Foods will be included in key leadership roles within the combined company, and Unilever will appoint four of the twelve members of the combined company’s board of directors.

With the separation of foods complete, Unilever says it will be better positioned to accelerate growth in beauty, wellbeing and personal care, the categories it believes offer the strongest structural tailwinds driven by premiumisation, science-led innovation and exposure to faster-growing digital and emerging market channels.