McCormick Announces Operating Structure and London Secondary Listing Plan Following Unilever Merger
McCormick announced on Thursday that, upon completion of the merger with Unilever's food business, it will reorganize into four commercial divisions, revealed its executive team composition, and plans a secondary listing in London.
Spice giant McCormick, in its first public unveiling of its operating model following the planned merger with Unilever's food business, announced it will restructure its commercial divisions and seek a secondary listing in London.
McCormick said that after the transaction closes, the company will be reorganized into four commercial divisions: Americas Consumer, International Consumer, Global Foodservice, and Global Flavor. The company also announced its anticipated executive team, which will be a mix of talent from both companies, effective from the closing date of the transaction.
"Our planned operating model is designed to put consumers and customers at the center of the combined business, enabling disciplined execution, enhanced innovation, and sustainable long-term growth while supporting a rewarding employee experience," McCormick President and CEO Brendan Foley said in a statement on Thursday.
McCormick announced in March an agreement to acquire most of Unilever's food business, including Hellmann's mayonnaise and Knorr sauces, for $44.8 billion. The deal, expected to close by mid-2027, will significantly expand McCormick's international presence and create a global spices and ingredients giant.
The company is splitting its spices, seasonings, and sauces business into two geographic divisions to better strengthen global brands tailored to local markets. McCormick said the Americas business will have annual sales of $8 billion in 2025, covering North, Central, and South America. The international business is expected to have annual sales of $7 billion.
Andrew Foust, who currently leads the integration process, will become president of the Americas Consumer division, while Unilever Foods President Heiko Schipper will serve as president of the International Consumer division.
The remaining two divisions—Foodservice and Flavor—will have annual sales of $4 billion and $2.5 billion in 2025, respectively. McCormick's Flavor division provides custom solutions for other food and beverage companies, and its growth has accelerated recently as the industry reformulates products to remove artificial ingredients or reduce costs.
Nuria Hernandez, head of Unilever's foodservice division, will take over the combined company's global foodservice division. Suzanne Roy, current president of McCormick's Flavor division, will continue as president of the global Flavor division.
Executives will be based at McCormick's global headquarters in Hunt Valley, Maryland, and at a new international headquarters in the Netherlands, continuing Unilever's long-standing presence in the region.
To reflect the combined company's global reach, McCormick will seek a secondary listing on the London Stock Exchange. The company stated that this move aims to enhance shareholder liquidity and improve cash flow.
Analysts at TD Cowen noted that the complexity of the deal and uncertainty about the condition of Unilever's food business "have made many investors uneasy." McCormick's U.S. retail business has also slowed due to increased competition from smaller brands and a continued pullback in consumer spending.
The new operating structure has somewhat alleviated investor concerns, with analysts holding positive expectations about the deal's "strategic advantages based on the acquisition" and McCormick's capabilities in marketing and R&D.
McCormick said in June that second-quarter gross profit increased by $155 million compared with the same period last year. Net sales growth was partly driven by sales growth in the Flavor Solutions division.