Unilever to Receive $15.7bn Cash in $44.8bn McCormick Transaction
UL•Unilever agreed to sell its food unit to McCormick in a transaction valuing the business at $44.8bn, receiving 65% equity in the combined group and $15.7bn cash. The deal excludes assets in India, Nepal and Portugal and is expected to close by mid-2027.
1. Toms Capital Builds Stake in McCormick
Toms Capital Investment Management has acquired a significant stake in McCormick during the second quarter, reflecting confidence in McCormick’s ability to integrate Unilever’s food brands. The size and timing of the investment remain undisclosed, highlighting strategic positioning ahead of the planned merger.
2. Unilever Food Division Sale Terms
Unilever confirmed a deal to sell its global food portfolio—including Hellmann’s mayonnaise, Knorr cooking aids and Colman’s mustard—to McCormick in a transaction valuing the unit at $44.8bn. Under the agreement, Unilever and its investors will receive $15.7bn in cash and 65% equity of the combined business, with Unilever shareholders set to own 55.1%.
3. Timeline, Exclusions and Closing Conditions
The transaction excludes Unilever’s food assets in India, Nepal and Portugal, as well as its lifestyle nutrition, Buavita and Lipton ready-to-drink operations, and requires McCormick shareholder and regulatory approval. Completion is anticipated by mid-2027, after which Unilever will hold a 9.9% stake in the enlarged group.
