Spice maker McCormick adds to its stable of brands with Unilever deal
AP News • • business
Key Points:
- McCormick is merging with Unilever’s foods division, which includes brands like Hellmann’s and Knorr, creating a combined company with projected 2025 revenue of $20 billion.
- Unilever and its shareholders will own 65% of the new company, valued at $29.1 billion, and receive $15.7 billion in cash, while McCormick shareholders will hold 35%.
- The merger aims to expand McCormick’s reach into high-growth regions such as Latin America and Asia, while boosting Unilever’s presence in North America, and enhance growth in the food service sector.
- The companies expect $600 million in annual cost savings and plan to complete the transaction by mid-2027, pending shareholder and regulatory approval; the deal excludes Unilever’s food business in India, Nepal, and Portugal.
- Unilever has been shifting focus away from food toward beauty and wellness, while McCormick continues to grow its flavor and spice portfolio, capitalizing on consumer trends toward cooking at home and healthier lifestyles.
