Spice and flavorings company McCormick announced on Tuesday that it’s combining with Unilever’s foods division, which includes household names like Hellmann’s and Knorr.
The combined company will maintain McCormick’s name and leadership. But upon closing, Unilever and its shareholders are expected to own 65% of the food company’s outstanding equity, amounting $29.1 billion. Unilever would also get $15.7 billion in cash. Meanwhile, McCormick shareholders will own 35.0%.
Unilever and McCormick confirmed they were in talks about a deal earlier this month, with Unilever attempting to streamline its business and focus on beauty and personal care products.
McCormick and its red-capped array of spices is a $15 billion company and the stable of brands it’s adding from Unilever are worth billions more. The companies said on Tuesday that McCormick and Unilever would have a combined revenue of $20 billion for the 2025 fiscal year.
The transaction is expected to close by mid-2027, the companies said Tuesday, pending both shareholder and regulatory approval. The deal excludes Unilever’s food business in India, Nepal and Portugal.
McCormick CEO Brendan Foley said in a prepared statement that the deal “accelerates McCormick’s strategy and reinforces our continued focus on flavor.” He added that McCormick has “long admired Unilever’s foods business, which has a “portfolio that complements our existing business, capabilities and long-term vision.”
Unilever, which is based in London, was founded nearly a century ago when Dutch margarine maker Margarine Unie merged with British soap maker Lever Brothers. The conglomerate now makes dozens of different brands, including Dove soap, Vaseline, Hellmann’s mayonnaise, Liquid I.V. hydration, Axe body spray and Pepsodent toothpaste.
In 2024, Unilever announced it was spinning off its ice cream business, which included the Ben & Jerry’s, Magnum and Breyers brands. That business became the Magnum Ice Cream Co., which is based in Amsterdam. Last year, Unilever sold The Vegetarian Butcher, a plant-based meat brand, and Graze, a healthy snacking brand.
McCormick, based in Hunt Valley, Maryland, has been expanding its portfolio to take advantage of consumers’ growing interest in global flavors and sauces. The 137-year-old company bought Reckitt Benckiser’s food division — including the French’s mustard and Frank’s RedHot sauce brands — in 2017. In 2020, it bought Cholula, a Mexican hot sauce brand.
Shares of both companies rose slightly before the opening bell Tuesday.
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