Key facts
- McCormick & Company plans to seek a secondary listing on the London Stock Exchange.
- The company is acquiring Unilever Plc's foods business for $44.8 billion.
- McCormick will maintain its global headquarters in Hunt Valley, Maryland, and its NYSE listing.
- An international headquarters will be established in the Netherlands.
- The combined entity will operate under four commercial divisions: Americas Consumer, International Consumer, Global Food Service, and Global Flavor.
McCormick & Company has announced its intention to pursue a secondary listing on the London Stock Exchange, following its agreement to acquire Unilever Plc's foods business for approximately $44.8 billion. This strategic move aims to create a global leader in seasonings, sauces, and condiments.
The company confirmed that its primary listing will remain on the New York Stock Exchange, with its global headquarters continuing in Hunt Valley, Maryland. Additionally, McCormick will establish an international headquarters in the Netherlands, leveraging Unilever's existing R&D facilities there. The transaction is anticipated to be accretive to McCormick's net sales growth rate, operating margin, and adjusted earnings per share in the first full year post-completion.
McCormick expects to achieve approximately $600 million in annual run-rate cost synergies, net of reinvestments, by the third year after closing, with roughly two-thirds of these synergies realized by the second year. An additional $100 million in cost and revenue synergies will be reinvested into growth initiatives. The combined company's leadership team will comprise talent from both McCormick and Unilever Foods, and it is expected to maintain McCormick's historical commitment to its dividend payments.
Upon completion of the transaction, which is expected by mid-2027, Unilever shareholders are projected to own 55.1% of the combined entity, McCormick shareholders 35.0%, and Unilever will hold 9.9%. The structure is designed to avoid U.S. federal income tax implications for Unilever and its shareholders. The combined business will be organized into four commercial divisions: Americas Consumer, International Consumer, Global Food Service, and Global Flavor, with the Americas Consumer division alone projected to generate $8 billion in revenue.