McCormick & Company (NYSE:MKC) and Unilever announced a landmark agreement on Tuesday, March 31, 2026, to combine McCormick with Unilever’s global foods business.
The transaction implies an enterprise value of approximately $44.8 billion for the Unilever unit, marking one of the largest consolidations in the history of the consumer packaged goods (CPG) sector.
Under the terms of the deal, Unilever and its shareholders will receive a combination of cash and equity.
Unilever and its stakeholders will receive stock valued at $29.1 billion, representing 65% of the fully diluted combined company’s equity.
Additionally, Unilever will receive $15.7 million in cash.
At closing, the ownership structure is expected to consist of Unilever shareholders (55.1%), McCormick shareholders (35%), and Unilever itself (9.9%).
The merger creates a global flavor and food leader with approximately $20 billion in combined fiscal year 2025 revenue.
The new entity will boast a dominant portfolio of household names; Unilever Foods brings category leaders Knorr and Hellmann's, which account for 70% of its sales, while McCormick contributes its flagship spices alongside French's, Frank's RedHot, Cholula, OLD BAY, and Lawry's.
McCormick plans to fund the $15.7 billion cash portion through cash on hand and new debt, supported by committed bridge financing from Citigroup, Goldman Sachs, and Morgan Stanley.
The combined company targets a net leverage ratio of 4x or less at closing, with a disciplined plan to return to 3x within two years.
The partners expect to realize $600 million in annual run-rate cost synergies by the end of the third year post-close.
Brendan Foley will lead the combined company as chairman, president, and CEO.
While the company will retain the McCormick name and its global headquarters in Hunt Valley, Maryland, it will establish an international headquarters in the Netherlands and seek a secondary stock listing in Europe to maintain its global reach.