McCormick will reorganize its commercial divisions and seek a secondary listing in London as the spice giant gives its first public look into its operating model following its planned merger with Unilever's food business.
Following the close of the deal, McCormick said it will reorganize into four commercial divisions: Americas Consumer, International Consumer, Global Food Service and Global Flavor. McCormick also announced the company's expected executive team, which is a mix of talent from both companies and is effective upon the deal's close.
"Our planned operating model is designed to place 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," Brendan Foley, president and CEO of McCormick, said in a statement Thursday.
McCormick in March said it reached an agreement to buy the majority of Unilever's food business, including Hellman’s mayonnaise and Knorr sauces, for $44.8 billion. The deal, expected to be completed by mid-2027, is set to significantly expand McCormick's international reach and create a global condiments and ingredients giant.
The company is splitting up its spices, condiments and sauces business into two geographic divisions to better enable McCormick to strengthen global brands tailored to local markets.
The Americas business will have $8 billion in annual sales for 2025 across North, Central and South America, McCormick said. The international business is expected to have $7 billion in annual sales.
Andrew Foust, who is currently overseeing the integration process, will become president of Americas Consumer division while Unilever Foods President Heiko Schipper will become president of International Consumer.
Food service and flavor, the remaining two divisions, will have $4 billion and $2.5 billion in annual sales for 2025, respectively. McCormick's flavoring division, which provides customized solutions to other food and beverage companies, has recently seen accelerated growth as the industry reformulates to remove artificial ingredients or lower costs.
Nuria Hernandez, who leads Unilever's food service division, will take over as head of Global Food Service for the combined company. Current McCormick flavoring president Suzanne Roy will continue to lead as president of Global Flavor.
Executives will be based across McCormick's global headquarters in Hunt Valley, Maryland, and its new international headquarters in the Netherlands, continuing Unilever's longstanding presence in the region.
To reflect the combined company's global presence, McCormick will seek a secondary listing on the London Stock Exchange. The move is set to enhance liquidity for shareholders and improve cash flow, the company said in a statement.
Analysts at TD Cowen noted that the complexity of the transaction and unknowns about the condition of Unilever's foods business "left many investors squeamish." McCormick has also seen slowdowns in its U.S. retail business due to increasing competition with smaller brands and a continued pullback in consumer spending.
The new operating structure somewhat assuaged investor fears, and analysts have positive expectations for the deal "on the strategic merits of the acquisition" and based on McCormick's capabilities in marketing and research and development.
McCormick said in June that gross profit for the second quarter increased by $155 million from the year prior. Net sales increased in part thanks to higher sales in the flavor solutions segment.
