McCormick to merge with Unilever Foods in $45 billion deal

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Summary · why it matters

McCormick announced an agreement to merge with Unilever's food division in a $45 billion transaction, adding brands like Hellmann's mayonnaise and Knorr bouillon to its portfolio. The deal aims to reduce McCormick's reliance on its core spice and seasoning business, where private-label brands now command nearly 40% of unit volume, by shrinking that segment from over 30% of total sales to less than 15%. The combined company projects operating margins to expand from 17% to 21% post-integration, but the transaction is structured as a Reverse Morris Trust, which will heavily dilute existing McCormick shareholders and increase debt to 4 times net debt-to-EBITDA. The merger is not expected to close until at least mid-2027, creating an extended overhang.