McCormick is spicing things up and adding Unilever Foods to its growing portfolio of CPG products.
In separate announcements Tuesday, the two companies said they had entered into an agreement "to combine McCormick with Unilever's Foods business," creating "a global flavor leader in attractive and high-growth categories."
The transaction, which Unilever said was unanimously approved by both companies' boards of directors, will create "two focused, faster-growing businesses -- better aligned to its categories, capabilities and value creation model."
Unilever Foods includes household name products like seasoning and cooking aid brand Knorr, condiment giant Hellmann's -- which is one of the world's leading mayonnaise brands -- as well as other local brands from across the globe.
McCormick's portfolio includes McCormick, French's, Frank's RedHot, Cholula, Stubb's, Old Bay, Lawry's and more.
The new joint company will keep McCormick's name and will be led by the McCormick CEO and CFO, with senior management from Unilever Foods, according to the companies.
The transaction is expected to close by mid-2027, the companies said, pending shareholder and regulatory approvals.
Brendan Foley, chairman, president and CEO of McCormick, said that combining forces will accelerate the company's strategy and 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," he said in a statement.
Upon closing, Unilever said the company and its shareholders are expected to receive, "in aggregate, shares equal to 65.0% of the fully diluted combined company equity," which will equate to $29.1 billion.
McCormick shareholders are expected to own 35% at closing.
Unilever will also receive $15.7 billion in cash, "subject to certain closing adjustments," the company said.
Unilever CEO Fernando Fernández said combining Unilever Foods' iconic brands and reach with McCormick's portfolio will allow the company to unlock "trapped value through a growth-led separation of Foods, creating a scaled, global flavor powerhouse."
"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," Fernández said in a statement. "Our retained ownership stake reflects our conviction in the strength of the combined company and its future prospects."
