Unilever Trades $44.8B Foods Unit for $15.7B Cash and 65% Share Stake
Unilever will combine its Foods division with McCormick in a $44.8 billion deal valued at 13.8x fiscal-2025 EBITDA, receiving $15.7 billion cash and shares equating to a 65% stake in the merged company. Upon closing, Unilever shareholders will own 55.1% of the new flavor-focused leader while Unilever retains a 9.9% equity interest.
1. Deal Terms and Valuation
Unilever's Foods unit is being valued at roughly $44.8 billion, equivalent to 13.8 times fiscal year 2025 EBITDA, as part of the agreement to merge it with McCormick. Under the terms, Unilever will receive $15.7 billion in cash and share issuance equating to a 65% stake in the combined flavor-focused company.
2. Ownership Structure and Capital Allocation
Upon closing, Unilever shareholders will own 55.1% of the combined entity, McCormick shareholders will hold 35.0%, and Unilever will retain a 9.9% interest in the merged business. The transaction is structured to avoid U.S. federal income tax for Unilever and its shareholders.
3. Strategic Impact for Unilever
The deal transforms Unilever into a €39 billion pureplay Home & Personal Care company by divesting its Foods division, sharpening its portfolio towards high-growth, high-margin categories. The strategic separation is expected to unlock trapped value and accelerate Unilever’s focus on its HPC brands.