After recent rumors, fueled by a first statement from Unilever today, the deal has been made official: the group has announced the combination of its Foods division with McCormick & Company, creating a new global flavor giant with revenues of approximately $20 billion. This transaction marks both a strategic turning point for the multinational's industrial footprint and a further step in its refocusing on higher-growth and more profitable categories.
The agreement, announced on March 31, 2026, provides for the creation of a global flavor platform that will bring together iconic brands such as Knorr, Hellmann's, and the McCormick portfolio, along with high-potential brands such as Cholula, Maille, and Frank's, with the aim of strengthening the presence in the spices, condiments, sauces, and cooking aids categories in both the retail and foodservice channels.
From an industrial perspective, the combination is based on strong geographic and expertise complementarity, as well as advanced research and development capabilities, which are considered key to meeting demand increasingly oriented towards innovative, high-value taste solutions.
For Unilever, the transaction represents a key step in its transformation into a pure HPC (Home, Personal Care and Beauty) player, with pro forma revenues of approximately €39 billion and a strengthened position in the highest-growth segments, also thanks to greater exposure to emerging markets and digital channels.
Financially, the transaction gives the Foods business an enterprise value of $44,8 billion, equivalent to 3,6 times sales and 13,8 times EBITDA, with Unilever and its shareholders set to hold a combined 65% stake in the new entity, in addition to a cash component of $15,7 billion.
The generated resources will be used to support the strengthening of the financial structure, maintain leverage at around 2x EBITDA, and finance a €6 billion buyback plan planned between 2026 and 2029, in line with the group's capital allocation policy.
The new entity led by McCormick will also benefit from synergies estimated at approximately $600 million annually at full capacity within three years, with further reinvestments intended to support organic growth and portfolio innovation.
The transaction is expected to close by mid-2027, subject to regulatory approval and McCormick shareholder approval, and is part of a broader transformation trend in global consumer goods, which is increasingly shifting toward focused, scalable, and high-margin models.
