Unilever and McCormick merge food units, creating $65 billion flavor giant

Unilever and McCormick & Co. will combine their food divisions into a new global entity. The transaction values the combined company at approximately $65 billion. Annual revenues for the new entity are projected to reach $20 billion.

The merger unites Unilever brands Hellmann's, Knorr, and Marmite with McCormick’s spice portfolio. The deal also includes hot sauce brands Frank's RedHot and Cholula.

The deal uses a tax-efficient Reverse Morris Trust structure. This structure values Unilever's food business at nearly $45 billion. Unilever will receive $15.7 billion in cash from the transaction. Unilever shareholders will retain a 65% majority stake in the new company.

Unilever will use the strategic pivot to focus on high-growth personal care and home goods. The move transforms McCormick into a dominant global flavor powerhouse.