McCormick to Combine with Unilever Foods, Making $20 Billion Company

McCormick, the company behind brands like Stubb’s BBQ sauce and Lawry’s, is combining with the company behind Knorr and Hellman’s, Unilever Foods. The combined entity will be a global leader in seasonings and sauces, with a combined revenue of around $20 billion.

The deal is being structured in a way to avoid change in control and the accompanying capital gains tax. Under the structure Unilever and its shareholders are expected to receive shares equating to 65.0% of the fully diluted combined-company outstanding equity, equivalent to $29.1 billion. Unilever will also receive $15.7 billion in cash net of closing items.