McCormick & Company's stock fell sharply by 5.7% to $50.66 on Tuesday, March 31, 2026, despite reporting first-quarter earnings and revenue that beat analyst expectations. The sell-off was driven by investor concerns over the company's recently announced $44.8 billion deal to acquire Unilever's entire food business.
The acquisition, a cash-and-stock transaction, values Unilever's food unit at roughly $44.8 billion. McCormick will pay $15.7 billion in cash, with Unilever shareholders set to own 55.1% of the new combined company. Unilever itself will retain a 9.9% stake and appoint four of the twelve board seats. The deal, expected to close in mid-2027 pending approvals, would bring iconic brands like Hellmann's mayonnaise and Knorr seasonings into McCormick's portfolio, creating a giant with approximately $20 billion in annual sales.
Despite strong Q1 2026 results—including revenue of $1.87 billion (a 17% year-over-year increase) and adjusted EPS of $0.66—investors focused on the risks. Analysts, such as Barclays' Andrew Lazar, pointed to the "hefty deal value," execution risk, and the increased debt load from the transaction as factors weighing on sentiment. The stock had already dropped 7.15% in premarket trading following the merger announcement.
For Unilever, the divestiture is part of a strategic shift to focus on its faster-growing personal care segment, following the earlier spin-off of its ice cream business. The combined company will maintain McCormick's headquarters in Maryland and establish an international base in the Netherlands, with plans for a secondary European stock listing.
