Unilever has agreed to merge its foods division with McCormick & Company in a deal valuing the Unilever Foods business at $64.8 billion (US$44.8 billion).
The combined business will include brands such as McCormick, Knorr and Hellmann’s, alongside Cholula, Maille and Frank’s. The combined company will operate across herbs, spices, seasonings, cooking aids, sauces and condiments, bringing together both retail and food service channels, as well as research and development capabilities.
Unilever chief executive officer Fernando Fernandez said the transaction supports a growth focused separation of the foods business.
“We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavour powerhouse,” said Fernandez.
“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.
“This is a combination built on strong strategic and cultural alignment, providing exciting opportunities for our people and ensuring our Foods brands continue to thrive as part of a global flavour leader. Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects.”
McCormick will retain its name, headquarters in Hunt Valley, Maryland and its NYSE listing. The company plans to establish an international headquarters in the Netherlands and pursue a secondary listing in Europe.
The combined business will be led by McCormick’s chief executive officer and chief financial officer, with representation from Unilever Foods in the senior management team.
McCormick chief executive officer Brendan Foley said the deal aligns with the company’s strategy.
“This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavour,” said Brendan Foley, chief executive officer of McCormick.
“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.
“We are excited to welcome their exceptional talent and international expertise to our Power of People culture,” added Foley.
Following the separation, Unilever will focus on its home and personal care operations across beauty, wellbeing, personal care and home care.