CHICAGO, March 31, 2026 - Unilever is spinning off its food business and joining forces with spice manufacturer McCormick & Co. in one of the largest food-related transactions in history, the companies announced Tuesday.
The deal would bring together in one portfolio iconic food brands such as Knorr, Hellmann’s and McCormick, as well as high-growth brands including condiments Cholula, Frank’s and Maille, the companies said.
The transaction values Unilever Foods at nearly $45 billion and McCormick at about $21 billion. Upon the deal’s completion, expected by the middle of next year, Unilever will receive $15.7 billion in cash from McCormick, and its shareholders will keep a 65% stake in the newly merged entity.
The deal is structured as a Reverse Morris Trust, or a transaction whereby one party spins off a division or holding to its shareholders. The spun-off operation is then merged with another organization, giving the divesting party’s shareholders a stake in both surviving companies. In the U.S., a Reverse Morris Trust transaction is usually untaxed.
Brendan Foley, McCormick’s chairman, president and CEO, said the deal reinforces his company’s focus on flavor.
“The Unilever business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision,” Foley said. “Together, we will be better positioned to accelerate growth in attractive categories.”
For Unilever, the deal is a welcome chance to separate out its food business to become a pureplay home and personal care manufacturer, Unilever CEO Fernando Fernández said.
“We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavor powerhouse,” Fernández said. “By combining Unilever Foods’ iconic leading brands and global reach with McCormick’s exceptional portfolio, category expertise and capabilities, we are establishing a focused, high-quality business with significant top-line growth and value creation potential.”
The merged organization will be run by Foley and McCormick CFO Marcos Gabriel, with Unilever represented in senior management. Unilever will have the ability to select four of the 12 members of the new board of directors.
McCormick will retain its global headquarters in Hunt Valley, Md., and intends to establish a European HQ in the Netherlands, while also planning a secondary stock listing abroad.
The new entity expects to see about $600 million in annual cost synergies over the first few years, as well as revenue synergies of about $100 million.
For the year ended Dec. 31, Unilever Foods reported about $12.4 billion in revenue and roughly $2.5 billion in profit.
Unilever’s Board of Directors unanimously approved the transaction. Goldman Sachs International and Morgan Stanley & Co. International served as advisors and brokers to Unilever. Citi and Rothschild & Co. acted as McCormick’s financial advisors.
Unilever’s history dates back to 1929, following the merger of British soap maker Lever Brothers and Dutch margarine maker Margarine Unie. Its portfolio contains such diverse products as Dove, Liquid I.V., Pepsodent, Vaseline and more.
Willoughby M. McCormick started his company in a cellar in 1889, selling flavors and extracts door to door. The company now produces a wide range of both consumer and foodservice products, including spices, extracts, flavorings, condiments and more.
Heather Lalley is the director of communications for IFMA The Food Away from Home Association. A lifelong journalist, Lalley has previously worked with industry publications including Restaurant Business, CSP Daily News, Supermarket News and Foodservice Director.