McCormick Weighs $45 Billion Unilever Food Bid

McCormick & Company said Tuesday it has agreed to buy Unilever’s food business in a stock-and-cash transaction, bringing a large set of condiment, sauce, and seasoning brands under McCormick’s ownership. The companies put the deal’s value at nearly $45 billion including debt and said they expect the transaction to be completed by mid-next year.

The companies said the combined operation would produce about $20 billion in annual revenue. Beyond the headline valuation, timing, and revenue figure, they did not disclose additional terms or provide further detail on how the enlarged business would be structured, other than indicating it would operate under the McCormick brand.

For Unilever, officials described the transaction as a major strategic change that would end its participation in the food industry after nearly a century. They said Unilever’s food division represented roughly a quarter of the company’s total revenues last year, underscoring the scale of the business being sold.

McCormick said the combination would strengthen its position in spices and sauces. Its existing portfolio includes its core spice franchise along with French’s mustard and Stubb’s barbecue sauce, while Unilever’s food business includes brands such as Hellmann’s mayonnaise and Knorr products. The companies presented the tie-up as a consolidation across categories that are common items in household grocery spending.

The announcement arrives during a broader period of mergers and acquisitions in the food industry, which the companies linked to efforts to find growth and maintain investor support amid slowing consumer spending. As an example of the operating backdrop, McCormick pointed to its latest quarterly performance: it reported a 17% increase in first-quarter sales, which it said was largely connected to its acquisition of McCormick de Mexico.

At the same time, McCormick reported organic sales growth of 1%, and the company attributed that increase entirely to price rises. It also said consumer demand slipped by nearly 1% in the same period, highlighting pressure on volumes even as pricing supported reported revenue. The companies did not specify how the combined business would be organized beyond operating under the McCormick brand, leaving key execution details undisclosed at this stage.

Investors reacted negatively in early trading following the announcement. McCormick shares fell 4% to $51.61, while Unilever shares declined 2.4% to $57.49. With the closing targeted for mid-next year, the transaction remains in a period where markets are focused on the path from announcement to completion.