Unilever strikes £34b food division merger deal with McCormick

Unilever has agreed to merge its food business, which includes Hellmann’s, Marmite and Knorr brands, with US competitor and French’s mustard owner McCormick in a deal which delivers combined revenue of $20b (£15.2b) in the 2025 fiscal year.

Under the terms of the deal, Unilever will receive a payout of approximately $15.7b (£11.9b) alongside a 9.9% stake in the newly-formed business. Unilever shareholders are expected to own 55.1% of the new company, while McCormick shareholders will own the remaining 3%.

The newly-formed company will be led by McCormick’s executive leadership and operate from a new international headquarters in the Netherlands, which will be accompanied with a secondary European listing.

In a joint statement, the two FMCG firms said this merger would combine “two industry-leading organisations with complementary global footprints and portfolios of iconic brands across herbs, spices, seasonings, cooking aids, condiments and sauces.”

McCormick chief executive and chair Brendan Foley said: “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 chief executive Fernando Fernández added: “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.”

Unilever previously confirmed McCormick’s interest after talks reportedly took place with Kraft Heinz to merge its food division with Kraft Heinz’s condiments arm.