Former Ben & Jerry's parent company Unilever PLC and McCormick & Co. Inc. entered into an agreement to combine Unilever’s Foods business with McCormick.

"The combination will create a scaled, global flavor powerhouse, bringing together two industry-leading, culturally aligned foods businesses with strong momentum, superior top line growth and enhanced value creation. The combined business will house leading, iconic brands including McCormick, Knorr and Hellmann’s, and high growth potential brands including Cholula, Maille and Frank’s, as part of a global portfolio with revenues of $20 billion, based on fiscal year 2025 data," the company said.

The separation of Unilever Foods will position Unilever as a leading pureplay HPC company, with €39 billion of revenues based on fiscal year 2025 and a sector-leading growth profile.

The transaction reflects an enterprise value of $44.8 billion for Unilever Foods, equivalent to an EV/Sales ratio of 3.6x and a 13.8x EV/EBITDA multiple based on the last 1-month volume-weighted average McCormick share price of $57.84 which is in line with the current trading multiple for Unilever, and in line with the most attractive foods company valuations.

“For Unilever, this transaction is another decisive step in sharpening our portfolio and accelerating our strategy towards high-growth categories as a€39 billion pureplay HPC company with a proven sector-leading growth profile," said Fernando Fernandez, CEO of Unilever.

"This transformative combination accelerates McCormick’s strategy and reinforces our continued focus on flavor. The Unilever Foods business is one we have long admired, with a portfolio that complements our existing business, capabilities and long-term vision. Together, we will be better positioned to accelerate growth in attractive categories. This combination will create a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them," added Brendan Foley, CEO of McCormick.