MD-Based McCormick To Merge With Unilever In $20B Deal

HUNT VALLEY, MD — Baltimore County-based McCormick & Co. announced on Tuesday that it plans to merge with Unilever, a move that will create a "global flavor leader" worth $20 billion.

The agreement combines McCormick with Unilever's food division, bringing together two organizations with global footprints and portfolios of brands that include herbs, spices, seasonings, cooking aids, condiments and sauces.

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 to $29.1 billion. Unilever would also get $15.7 billion in cash. Meanwhile, McCormick shareholders will own 35.0%.

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.

"Unilever Foods' global portfolio of strong brands, combined with our proven expertise in insight-driven brand-building and integration, will enable us to deliver flavor in new and exciting ways for more consumers, driving significant growth across the combined portfolio and value for all stakeholders," McCormick CEO Brendan Foley said in a statement.

Unilever Foods is known for its wide array of flavoring and cooking aids, condiments, sauces and other food products, led by brands Knorr and Hellmann's, which comprise approximately 70% of sales, the company said.

In recent years, Unilever has been shifting away from food in favor of beauty and wellness categories, where it sees more potential for growth.

McCormick, known for its iconic range of seasonings including Old Bay and Lawry's, 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.

Foley said spices and flavors have remained resilient, transcending age, culture, dietary preferences and income levels. McCormick's net sales grew 2% last year.

“Flavor is fully aligned with today’s health and wellness priorities, as consumers increasingly focus on cooking at home, adding more protein and produce and pursuing healthier lifestyles,” Foley said Tuesday during a conference call with investors.

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.

The Associated Press contributed reporting.