Unilever has agreed to merge a major portion of its food business with McCormick & Company in a $44.8 billion deal, marking a significant strategic shift for both companies. The move signals Unilever’s intent to pivot away from food and focus more on high-growth categories like beauty, personal care, and wellbeing.
Under the agreement, Unilever will receive $15.7 billion in cash along with $29.1 billion worth of McCormick shares. Following the merger, Unilever and its shareholders will hold a 65% stake in the newly formed entity, which is expected to become a global leader in seasonings, condiments, and cooking products. The transaction will be executed through a Reverse Morris Trust, ensuring tax efficiency.
The combined business is projected to generate approximately $20 billion in annual sales, reflecting the scale and strength of the merged portfolios. It brings together complementary offerings across spices, sauces, and flavour categories, strengthening McCormick’s global footprint.
For Unilever, this marks a clear departure from a nearly century-long association with the food segment. Changing consumer behaviour-such as a shift towards fresher food, private labels, and evolving dietary trends-has put pressure on traditional packaged food businesses. CEO Fernando Fernandez has indicated a sharper focus on faster-growing and higher-margin segments.
Notably, certain parts of Unilever’s food business, including its India operations, are excluded from the deal.
Overall, the merger reflects a broader industry trend of portfolio restructuring, as companies realign their businesses to capture future growth opportunities.
