Spice and flavourings company McCormick says it is combining with Unilever’s foods division, which includes household names like Hellmann’s and Knorr.
The combined company will maintain McCormick’s name and leadership.
But upon closing, Unilever shareholders are still expected to own 55.1 per cent of the food company as well as 9.9 per cent in outstanding equity, while McCormick shareholders will own 35 per cent.
Unilever and McCormick confirmed they were in talks about a deal last month, with Unilever attempting to streamline its business and focus on beauty and personal care products.
McCormick and its red-capped array of spices is a $US15 billion ($A22 billion) company and the stable of brands it is adding from Unilever are worth billions more.
The companies said on Tuesday that McCormick and Unilever would have a combined revenue of $US20 billion for the 2025 fiscal year.
The transaction announced on Tuesday excludes Unilever’s food business in India, Nepal and Portugal.
McCormick CEO Brendan Foley said in a prepared statement that the deal “accelerates McCormick’s strategy and reinforces our continued focus on flavour”.
He added that McCormick has “long admired” Unilever’s foods business, which has a “portfolio that complements our existing business, capabilities and long-term vision”.
Unilever, which is based in London, was founded nearly a century ago when Dutch margarine maker Margarine Unie merged with British soap maker Lever Brothers.
The conglomerate now makes dozens of different brands including Dove soap, Vaseline, Hellmann’s mayonnaise, Liquid IV hydration, Axe body spray and Pepsodent toothpaste.
In 2024, Unilever announced it was spinning off its ice cream business, which included the Ben & Jerry’s, Magnum and Breyers brands.
That business became the Magnum Ice Cream Co, which is based in Amsterdam.
Last year, Unilever sold The Vegetarian Butcher, a plant-based meat brand, and Graze, a healthy snacking brand.
McCormick, based in Hunt Valley, Maryland, has been expanding its portfolio to take advantage of consumers’ growing interest in global flavours and sauces.
The 137-year-old company bought Reckitt Benckiser’s food division – including the French’s mustard and Frank’s RedHot sauce brands – in 2017.
In 2020, it bought Cholula, a Mexican spicy sauce brand.
Shares of both companies rose slightly before the opening bell in the US on Tuesday.
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