McCormick & Company, a leading US spice and flavorings firm, is merging with the food division of British-Dutch conglomerate Unilever, in a transaction valued at $44.8 billion. The deal will place brands such as Marmite, French’s mustard, and Hellmann’s mayonnaise under McCormick’s control, with Unilever shareholders owning 65% of the combined company upon closing.
The merger agreement, confirmed by both companies on Tuesday, aims to create a global food powerhouse with projected combined revenues of $20 billion for the fiscal year 2025. Unilever will receive $15.7 billion in cash, while McCormick shareholders will retain a 35% ownership stake in the merged entity, which will continue to operate under the McCormick name and leadership.
Details and timeline
The transaction excludes Unilever’s food operations in India, Nepal, and Portugal. It is subject to approval by shareholders and regulators and is expected to close by mid-2027. McCormick is based in Hunt Valley, Maryland, and has a 137-year history of expanding through acquisitions, including its purchase of Reckitt Benckiser’s food division in 2017 and the Cholula hot sauce brand in 2020.
Unilever is currently focusing on streamlining its business to concentrate on beauty and personal care products. The company has been divesting food brands such as its ice cream division—spun off in 2024 as Magnum Ice Cream Co.—and selling The Vegetarian Butcher and Graze in recent years.
Company remarks
McCormick CEO Brendan Foley said the merger “accelerates McCormick’s strategy and reinforces our continued focus on flavor,” emphasizing admiration for Unilever’s complementary food portfolio. The partnership is expected to strengthen McCormick’s position across global flavors and sauces, leveraging Unilever’s legacy brands.
Why it matters
The merger creates one of the largest global food companies centered on flavor, seasoning, and condiments. With combined revenues of $20 billion, the new company will have expanded market reach and brand diversity. The deal reflects ongoing industry trends of consolidation as companies focus on honing core business areas and consumer tastes shift toward specialized flavor profiles.
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