TLDR
- McCormick is buying Unilever’s food business, including Hellmann’s and Knorr, in a cash-and-stock deal worth ~$44.8 billion.
- McCormick will pay $15.7 billion in cash; Unilever shareholders will own 55.1% of the combined company.
- The deal adds billions in annual sales and expands McCormick into condiments and spreads.
- Unilever is offloading food to focus on faster-growing personal care.
- The deal is expected to close in mid-2027, pending shareholder and regulatory approval.
McCormick (MKC) stock edged up around 1% in premarket trading on Tuesday. Unilever (UL) was roughly flat.
McCormick & Company, Incorporated, MKC
Spice giant McCormick has struck a deal to acquire Unilever’s entire food business in a cash-and-stock transaction valuing the unit at roughly $44.8 billion. The agreement, announced Tuesday, would combine McCormick’s spice and condiment empire with some of the world’s most recognisable food brands.
Breaking: Unilever is nearing a deal to combine its food business with spice-maker McCormick to create a new $60 billion behemoth https://t.co/HQCScAs1b9
— The Wall Street Journal (@WSJ) March 30, 2026
McCormick will pay $15.7 billion in cash as part of the deal. Unilever shareholders will hold 55.1% of the new combined company, while Unilever itself retains a 9.9% stake. When the deal closes, Unilever will appoint four of the 12 board seats on the combined entity.
The Unilever Foods portfolio being sold is anchored by Hellmann’s mayonnaise and Knorr, which together account for about 70% of the unit’s total sales. Knorr is best known for its seasonings, stock cubes, and soups. UK favourite Marmite is also included in the transaction.
McCormick already sells Frank’s RedHot and Cholula hot sauces, as well as French’s mustard. Adding Hellmann’s and Knorr pushes it deeper into spreads, condiments, and everyday cooking staples — a meaningful portfolio expansion.
Why Unilever Is Selling
For Unilever, this deal is about focus. The company has been shifting resources toward its personal care segment, which has been growing faster than food. In December, Unilever already spun off its ice cream business, which now trades separately as Magnum Ice Cream Company.
Divesting the food unit is the next step in that strategy. Unilever keeps a meaningful stake in the combined company and board representation, so it doesn’t walk away entirely.
Deal Structure and Timeline
The combined company will maintain McCormick’s global headquarters in Hunt Valley, Maryland, and will add an international headquarters in the Netherlands — the long-standing home of Unilever Foods. A secondary stock listing in Europe is also planned.
For the first two years after closing, one of Unilever’s four board representatives must be a Unilever executive. The deal is expected to close in mid-2027, subject to shareholder and regulatory approvals.
Barclays analyst Andrew Lazar noted the deal has “compelling earnings per share accretion” potential but flagged the hefty deal value, execution risk, and the fact that Unilever shareholders would hold the majority of the combined company as factors that could weigh on initial investor enthusiasm.
The broader context: big packaged food companies have been leaning on divestitures to streamline. In 2024, nearly half of all mergers and acquisitions activity in consumer products came from divestitures, according to Bain.
McCormick stock was up roughly 1% in premarket trading on Tuesday, while Unilever’s stock was trading flat.
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