The well-known spice manufacturer McCormick revealed Tuesday it will merge with Unilever’s food operations, bringing together major household brands including Hellmann’s mayonnaise and Knorr seasonings.
While the merged entity will retain McCormick’s brand identity and executive team, the ownership structure will shift significantly. Unilever investors are projected to control 55.1% of the new food company plus an additional 9.9% in outstanding shares, leaving McCormick stockholders with a 35.0% stake when the deal finalizes.
Last month, both corporations acknowledged they were engaged in merger discussions, as Unilever works to narrow its business focus toward beauty and personal care products.
The spice company, recognizable by its distinctive red bottle caps, carries a $15 billion valuation, while the Unilever food brands being acquired represent billions in additional value.
Tuesday’s announcement specified that Unilever’s food operations in India, Nepal and Portugal will not be part of the transaction.
In a written statement, McCormick Chief Executive Brendan Foley described the merger as something that “accelerates McCormick’s strategy and reinforces our continued focus on flavor.” Foley noted that his company has “long admired Unilever’s foods business,” calling it a “portfolio that complements our existing business, capabilities and long-term vision.”
Stock prices for both companies experienced modest gains in pre-market trading Tuesday morning.
