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McCormick Acquires Unilever's Food Business in $45 Billion Deal

Mar 31, 2026 12:08 UTC

McCormick will pay a combination of cash and equity to expand further into condiments and spreads.

  • McCormick acquires Unilever's food business for $45 billion in a cash and equity deal.
  • $15.7 billion in cash paid upfront for the acquisition.
  • Unilever shareholders will own 55.1% of the combined company.
  • The deal excludes Unilever's food operations in India and is expected to close by mid-2027.
  • The merger is projected to drive 3% to 5% organic sales growth for McCormick.
  • Unilever will focus on its personal-care segment following the acquisition.

McCormick has announced a $45 billion acquisition of Unilever's food business, combining cash and equity in the deal. The transaction includes brands like Hellmann's mayo and Marmite, with $15.7 billion in cash paid upfront. Unilever shareholders will own 55.1% of the new entity, while Unilever itself will retain a 9.9% stake. This acquisition significantly expands McCormick's portfolio, adding billions in annual sales and broadening its presence in spreads and condiments. The deal excludes Unilever's food operations in India and is expected to close by mid-2027, pending regulatory and shareholder approvals. The merger is projected to drive organic sales growth of 3% to 5% for McCormick post-merger. Unilever's strategic shift focuses on its personal-care segment, following the recent spinoff of its ice cream business into Magnum Ice Cream Co. The combined company will maintain McCormick's global headquarters in Hunt Valley, Maryland, and establish an international headquarters in the Netherlands. The deal reflects a broader trend in the food industry, where companies are streamlining operations through divestitures and mergers. Shares of both companies have seen declines in early trading, with McCormick down 6% and Unilever down 4%, as investors weigh the risks and potential of the mega-merger.

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