Unilever & McCormick: US$44.8bn Deal for Foods Assets

Unilever has agreed sale of its foods assets, which include Marmite, Horlicks and Knorr to US based McCormick. 

The transaction reflects an enterprise value of US$44.8bn for Unilever Foods.

Unilever argue that upon closing, the transaction will create two focused, faster-growing businesses each better aligned to its categories, capabilities and value creation model.

What does the deal mean for Unilever?

This deal implies an enterprise value for Unilever Foods of approximately US$44.8bn, or approximately 13.8 times fiscal year 2025 earnings before interest, taxes, depreciation and amortisation. 

Unilever and its shareholders are expected to receive shares equating to 65% of the fully diluted combined-company outstanding equity, equivalent to US$29.1bn based on McCormick's one-month volume-weighted average price.

Unilever will also receive US$15.7bn in cash, subject to certain closing adjustments.

This reflects an enterprise value for McCormick of approximately US$21.0bn, or approximately 13.8 times its 2025 fiscal year. 

Unilever's Foods

Unilever's portfolio includes Knorr, a popular stock and seasoning product, and Marmite. According to reports from Bloomberg, Hellmann’s and Knorr make up 60% of Unilever’s food sales. 

Fernando Fernández, Chief Executive Officer of Unilever, says: "For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a EUR€39bn (US$44.7bn) pureplay HPC company with a proven sector-leading growth profile.

"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 and ensuring our Foods brands continue to thrive as part of a global flavour leader. Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects."

Unilever argue that the separation of Unilever Foods will position Unilever as a high-growth company, estimating EUR€39bn (US$44.7bn) of revenues based on fiscal year 2025.

Post-completion, Unilever will operate across beauty, wellbeing, personal care and home care.

McCormick's transformation

McCormick is an American food company with brands including Cholula, Frank's RedHot, French's and Schwartz.

McCormick will retain its existing name, its , Maryland global headquarters and NYSE listing. McCormick will establish international headquarters in the Netherlands and is planning a secondary listing in Europe.

Brendan Foley, Chairman, President and Chief Executive Officer of McCormick, says: "This transformative combination accelerates McCormick's strategy and reinforces our continued 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. This combination will create 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 and integration, will enable us to deliver flavour in new and exciting ways for more consumers, driving significant growth across the combined portfolio and value for all stakeholders.

"Integrating two global organizations of this scale requires disciplined execution, and we are confident that our detailed integration roadmap, experienced teams from McCormick and Unilever, external advisors and our strong partnership will enable us to capture the full value of this opportunity. 

"McCormick is the right partner for Unilever Foods' brands and employees, and our shared culture and values will empower our combination. We are excited to welcome their exceptional talent and international expertise to our Power of People culture."

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McCormick said in a statement that the combination brings together two industry-leading organizations with complementary global footprints and portfolios of iconic brands across herbs, spices, seasonings, cooking aids, condiments and sauces.

It argues that the combined company is expected to benefit from expanded global reach, enhanced scale across retail and foodservice channels and greater resources to invest in innovation, brand-building and global distribution.