McCormick buys Unilever’s food business in USD44.8b deal
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The news: US food and ingredients company McCormick & Company agreed to buy Unilever’s food business in a deal valuing the unit at almost USD45 billion ($65.34 billion), the companies announced on Tuesday.
The numbers: The deal will see McCormick pay the Anglo-Dutch company USD15.7 billion and shares in McCormick worth USD29.1 billion for a majority of Unilever’s food business.
The deal will leave Unilever and its shareholders with a 65% stake in the combined entity.
The context: The deal is the biggest transaction in the history of both consumer goods’ companies, and follows Unilever’s ice-cream business spin off in 2024. Unilever will now focus on its personal care segment while the deal will add to McCormick’s portfolio, expanding it from spices into spreads and condiments.
Goldman Sachs and Morgan Stanley acted as financial advisers and brokers to Unilever, while Clifford Chnace and Wachtell Lipton Rosen & Katz acted as legal advisers.
Citi and Rothschild advised McCormick, with Cleary Gottlieb Steen & Hamilton and Hogan Lovells providing legal advice.
What they said: Brendan Foley, chairman, president and CEO of McCormick, said in a statement: “This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavor…Together, we will be better positioned to accelerate growth in attractive categories. This combination will create a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them.”
The source: McCormick and Unilever press release
