Unilever confirms $44.8B acquisition of McCormick Proactive uses images sourced from Shutterstock
Unilever PLC (LSE:ULVR) said on Tuesday it has agreed to combine its food business with McCormick & Company Inc (NYSE:MKC) in a $44.8 billion transaction, creating a global portfolio of iconic and high-growth food brands.
The combined business will include well-known labels such as McCormick, Knorr, and Hellmann’s, as well as faster-growing brands including Cholula, Maille, and Frank’s, generating an estimated $20 billion in revenues, Unilever said in a statement.
McCormick will retain its name, Maryland headquarters, and NYSE listing, while establishing an international headquarters in the Netherlands and pursuing a secondary European listing.
The deal comes as McCormick reported its first-quarter 2026 earnings, highlighting the contribution of recent acquisitions. Net sales rose 16.7% to $1.87 billion, while adjusted earnings per share climbed 10% to $0.66, surpassing analysts’ average estimate of $0.63. Adjusted operating income increased 18.8% to $267.6 million.
McCormick credited the double-digit sales surge primarily to the acquisition of McCormick de Mexico, which contributed roughly 13% to first-quarter sales. Organic growth was modest at 1.2%, driven by strategic pricing initiatives, while margin expansion reflected cost-saving measures under the company’s CCI program and an improved product mix.
The company reaffirmed its 2026 guidance of 13% to 17% net sales growth and adjusted EPS of $3.05 to $3.13.
Analysts at Jefferies noted that McCormick topped Q1 expectations due to acquisition and pricing contributions, with volume declines lagging consumer and flavor solutions peers.
Analysts believe that the transaction could give McCormick incremental scale, greater exposure to emerging markets, and a more favorable product mix amid a pressured packaged food sector.
Strategically, the merger would expand McCormick’s international footprint and distribution reach, particularly in markets with stronger retail and foodservice growth, while increasing branded flavor presence across both channels, Jefferies believe. Analysts cautioned that leverage and execution risks remain, but potential cost and revenue synergies make the combination “directionally sensible at a high level.”
Shares of McCormick fell 4.4% in early trading Tuesday morning, while Unilever’s US-listed shares were down 6.4%.