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The basics:

• McCormick to acquire Unilever‘s food division for $44.8B in cash and stock
• Combined company expected to generate roughly $20B in annual revenue
• Unilever shareholders to own 55.1% of the new company
• Move aligns with Unilever’s strategy to focus on higher-growth segments

Consumer packaged goods giant Unilever is spinning off its food business and merging it with spice maker McCormick in a $44.8 billion deal to expand the grocery staples company.

Under the terms of the deal announced March 31, McCormick will pay $15.7 billion in cash and the equivalent of $29.1 billion in shares.

It allows Unilever shareholders to own 55.1% of the combined company, while Unilever will hold a 9.9% stake. McCormick shareholders will own 35%.

The news comes about a week and a half after media reports triggered speculation that McCormick and Unilever were cooking up a deal.

The Wall Street Journal reported at the time that McCormick’s offer to Unilever was unsolicited.

The McCormick–Unilever deal ranks as the second-largest food transaction in history, behind the roughly $100 billion 2015 merger that created Kraft Heinz, Reuters noted.

Considered one of the largest CPG companies in the world, Unilever’s portfolio includes powerhouse brands like Dove soap, Hellmann’s mayonnaise, Axe body care and Vaseline petroleum jelly.

Besides Hellmann’s, the food business also includes Knorr bouillon, soups, seasonings, sauces, pasta and rice; and Marmite spreads. While the unit represented a quarter of the company’s total sales in 2025 ($14.91 billion), the division is growing more slowly than Unilever’s overall business.

Spicing it up

A global leader in flavor, McCormick makes, markets and distributes herbs, spices, seasonings, condiments and flavors to retailers, food manufacturers and foodservice businesses. The 137-year-old company’s most popular brands are McCormick, French’s, Frank’s RedHot, Old Bay and Stubbs.

McCormick CEO, President and Chairman Brendan Foley described the merger as a “transformative combination” that accelerates his company’s “strategy and reinforces our continued focus on flavor.”

“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 flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them,” he said.

Although it is headquartered in London, Unilever’s North American base in Hoboken. Prior to relocating to its brand-new office last year at Waterfront Corporate Center, the company spent decades in Englewood Cliffs.

Unilever’s evolution

The sale to McCormick marks Unilever’s latest move in an ongoing effort to slim down its portfolio to concentrate on faster-growing divisions, like beauty & well-being, personal care and household.

Last year, the company spun off its ice cream division into a standalone business.Unilever said the separation will enable it to become “a simpler, more focused company.” It also said that the ice cream business – a portfolio that includes Good Humor, Yasso, Magnum, Talenti and Ben & Jerry’s – would perform better on its own.

Unilever CEO Fernando Fernandez said the sale to McCormick is “another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories” as a pureplay home and personal care company.

“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,” he said, adding, “Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects.”

A seasoned approach

The transaction will create a combined company under the McCormick name with estimated $20 billion in revenue. The deal is expected to be completed in mid-2027, the companies said.

After that, McCormick will remain based in Maryland and continue to be led by Foley. The announcement noted that executives from both companies are expected to serve in key leadership roles. It also said Unilever will appoint one-third of the board.

Additionally, McCormick will also create a secondary listing in Europe and establish an international headquarters in the Netherlands where Unilever has had a long-standing presence, the companies said.

The agreement excludes certain Unilever assets, such as Lipton’s ready-to-drink line and Buavita juices, as well as food operations in India, Portugal and Nepal.

The separation comes as many CPG companies trim portfolios in response to challenges like consumer shifts away from processed food, tariffs and rising energy prices, according to Reuters.

The Financial Times reported earlier this month that Unilever considered merging its food assets with Kraft Heinz’s condiments business but the talks ended.