Unilever has entered into a definitive agreement to merge its global food business with McCormick & Company. This transformative transaction values the Unilever Food division at an enterprise value of approximately $44.8 billion. Under the terms of the deal, Unilever will receive $15.7 billion in cash and a 9.9% equity stake in the combined entity, which it intends to divest gradually. Post-transaction, Unilever’s shareholders will own 55.1% of the new group, while McCormick’s existing shareholders will hold 35%. The strategic rationale for the deal is to create a world leader in flavors and condiments with a combined revenue of approximately $20 billion (2025 figures). For Unilever, the move represents a decisive step in its strategic refocusing toward high-growth beauty, wellbeing, and personal care segments, following the prior spin-off of its ice cream division. The combined entity will operate under the McCormick name, maintaining its global headquarters in Maryland and establishing an international headquarters in the Netherlands with a dual listing in New York and Europe. The merger is expected to generate $600 million in annual cost synergies by the third year.

UNILEVER FOOD DIVISION, which reported an EBITDA margin of LOGIN in 2025, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 10.1x average currently observed in the AgriFood sector.

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