en.Wedoany.com Reported - Unilever and McCormick & Company have reached an agreement to merge Unilever's food business with McCormick, expected to form a global portfolio with approximately $20 billion in revenue. This move aims to transform Unilever into a company focused on the home and personal care sectors.
Upon completion of the transaction, Unilever will concentrate on developing its beauty, health, personal care, and home care businesses, while the merged food business will integrate brands such as McCormick, Knorr, and Hellmann's. Unilever's press release stated: "The Unilever Board has evaluated and believes that this transaction aligns with shareholder interests, unlocking value, simplifying the business portfolio, and enhancing investment returns." The merged company will be led by McCormick's CEO and CFO, with Unilever's food business management also participating.
Under the agreement, Unilever expects to achieve a tax-free merger through a "Reverse Morris Trust" transaction. Unilever and its shareholders will receive common stock of McCormick, equivalent to approximately 65.0% of the equity in the merged company, valued at about $29.1 billion. Unilever will also receive $15.7 billion in cash to offset costs, repay debt, and support share buybacks. The transaction reflects an enterprise value of $44.8 billion for Unilever's food business.
The merged company is expected to achieve approximately $600 million in annualized cost synergies, with full value realized by the end of the third year. The transaction has been approved by both companies' boards and is expected to be completed by mid-2027, subject to shareholder approval and regulatory conditions. Unilever CEO Fernando Fernandez stated: "This transaction optimizes our business portfolio, accelerates our shift toward high-growth categories, and makes us a pure-play home and personal care company with €39 billion in revenue." McCormick CEO Brendan Foley added: "The merger strengthens our focus on flavor, creating a diversified flavor leader with strong growth prospects." There were previously rumors of Unilever negotiating with Kraft Heinz, but Unilever confirmed discussions with McCormick.
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