McCormick to Acquire Unilever Foods for $44.8B
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- McCormick announced a $44.8 billion cash‑and‑stock deal with Unilever Foods, structured as a Reverse Morris Trust, and its shares fell sharply, heading for the worst month in 46 years.
- McCormick will contribute $29.1 billion in stock and $15.7 billion in cash, but will own only 35 % of the combined company after the merger.
- Unilever and its shareholders will hold 65 % of the new entity, with Unilever itself owning 9.9 % and its shareholders 55.1 %.
- Deutsche Bank analyst Steve Powers noted that while the strategic fit is strong, the scale of the transaction creates “clear and sizable execution risks.”
- Brendan Foley said the combination is “transformative” and will accelerate growth in flavor categories, while the deal is slated to close by mid‑2027 with Foley remaining CEO.
- Unilever’s U.S.‑listed shares dropped 4.5 % on the announcement day, and McCormick’s Q1 net sales rose 16.7 % to $1.87 billion, beating analyst expectations.
Why it matters: Investors in McCormick see a sharp sell‑off as the stock slides toward its worst month in nearly five decades, while Unilever shareholders will control the merged entity, reflecting market skepticism about integration risk, the 35%‑vs‑55% ownership split, and the sizable cash‑and‑stock outlay.
