Spice maker McCormick to combine with Unilever food
Spices and sweeteners company McCormick has announced that it will merge with Unilever’s food division, which includes famous names such as Hellmann’s and Knorr.
The combined company will retain McCormick’s name and leadership.
However, after closing, Unilever shareholders are expected to own 55.1 percent of the food company and 9.9 percent of the outstanding capital, while McCormick shareholders are expected to own 35 percent.
Unilever and McCormick confirmed last month they were in talks for a deal; Unilever is trying to streamline its business and focus on beauty and personal care products.
McCormick and its redcap spice range is a US$15 billion ($22 billion) company, and its stable of brands from Unilever are worth billions of dollars.
McCormick and Unilever will generate combined revenue of $20 billion for fiscal 2025, the companies said Tuesday.
The transaction announced Tuesday does not include Unilever’s food operations in India, Nepal and Portugal.
The deal “accelerates McCormick’s strategy and reinforces our continued focus on taste,” McCormick CEO Brendan Foley said in a prepared statement.
He added that McCormick has “long admired” Unilever’s food business, which has “a portfolio that complements our existing business, capabilities and long-term vision.”
Headquartered in London, Unilever was founded nearly a century ago by the merger of Dutch margarine manufacturer Margarine Unie with British soap manufacturer Lever Brothers.
The conglomerate currently produces dozens of different brands, including Dove soap, Vaseline, Hellmann’s mayonnaise, Liquid IV hydration, Ax body spray and Pepsodent toothpaste.
In 2024, Unilever announced that it would close its ice cream business, which includes the Ben & Jerry’s, Magnum and Breyers brands.
This business is Magnum Ice Cream Co., headquartered in Amsterdam. happened.
Last year, Unilever sold plant-based meat brand The Vegetarian Butcher and healthy snack brand Graze.
Headquartered in Hunt Valley, Maryland, McCormick is expanding its portfolio to capitalize on consumers’ growing interest in global flavors and sauces.
The 137-year-old company acquired Reckitt Benckiser’s food division, including the French mustard and Frank’s RedHot sauce brands, in 2017.
In 2020, it acquired Mexican spicy sauce brand Cholula.
Shares of both companies rose slightly ahead of the opening bell in the U.S. on Tuesday.
