Maryland-based McCormick & Co. announced a sweeping deal to combine with Unilever’s global foods business, a move that would create a $20 billion “flavor” giant while the company also reported solid quarterly earnings Tuesday.

Under the agreement, McCormick will merge with Unilever’s foods division — excluding India and certain other markets — bringing together brands across spices, condiments, sauces and cooking aids. The combined company is expected to generate about $20 billion in annual revenue and significantly expand McCormick’s global reach.

The deal values Unilever’s food business at roughly $44.8 billion. Unilever and its shareholders are expected to receive a majority stake in the combined company, along with $15.7 billion in cash, while McCormick shareholders would retain a sizable minority stake.

McCormick Chairman and CEO Brendan Foley called the deal “transformative,” saying it strengthens the company’s long-term strategy.

“We are bringing together two leading organizations, McCormick and Unilever Foods, to create a strong, scaled, and growth-oriented company that will be flavor-focused and exceptionally well-positioned to succeed in today’s dynamic environment,” Foley said in a conference call Tuesday morning. “We have always seen the logic of this combination. We’re excited by the opportunity to deliver end-to-end flavor experiences to even more people around the world. Bringing a taste that inspires, connects, and brings joy to kitchens and tables everywhere.”

Unilever’s foods division includes globally recognized brands such as Knorr and Hellmann’s, which together account for a majority of its sales and reach consumers in dozens of countries.

Peter Galbo, a stock analyst with Bank of America, said the deal “has made sense for some time.”

“Unilever’s foods business was inconsistent with the rest of its portfolio and complements McCormick’s existing spices, seasonings and condiments by adding Hellmann’s mayonnaise and Knorr for scratch cooking. The combination creates a more focused, scaled global player in condiments and scratch cooking, with mayonnaise as a new growth opportunity for McCormick.”

“The biggest risk is integration — McCormick has never done a full merger, although it has carved out food businesses before, like RB Foods in 2017,” Galbo added.

Unilever CEO Fernando Fernández said the move allows the company to sharpen its focus on faster-growing areas of its business while unlocking value from its foods portfolio.

“We are confident (this is an) intelligent, compelling outcome for all the stakeholders,” Fernández said on the conference call. “Over the past several years, we sharpened our strategic focus, shaped our portfolio to higher-growth categories and strengthened our operational foundation. The transaction is a natural extension of our strategy.”

The announcement came as McCormick reported its first-quarter results, showing continued growth.

The company said net sales rose 16.7% for the quarter ending Feb. 28, with modest organic growth of 1.2%. Operating income edged up to $228 million, while adjusted operating income increased to $268 million.

Earnings per share rose to $3.77, largely due to a one-time gain tied to the McCormick de Mexico acquisition. Adjusted earnings per share rose to 66 cents, up from 60 cents a year earlier.

“We delivered strong growth in sales, adjusted operating income, and adjusted earnings per share, supported by the McCormick de Mexico acquisition and organic growth across both consumer and flavor solutions,” Foley said. “Strong sales, acquisition accretion, and disciplined cost management enabled margin expansion as we continued to invest for future growth.”

McCormick reaffirmed its outlook for fiscal 2026, signaling confidence in its underlying business even as it pursues one of the largest deals in its history.

If completed, the transaction would create one of the world’s largest flavor-focused food companies, combining McCormick’s strength in spices and seasonings with Unilever’s global condiments and cooking brands and positioning the Baltimore County company at the center of a rapidly consolidating global food industry.

“McCormick is a natural home for Unilever’s food brands,” Foley said.

©2026 The Baltimore Sun. Visit at baltimoresun.com. Distributed by Tribune Content Agency, LLC.