MKC changes
Pick any two versions below to diff them.
- Price
- $46.24 → $46.94(+1.5%)
- Risks
- The Unilever Foods deal is very large. McCormick will pay $15.7 billion in cash and issue shares that leave current shareholders with about 35% of the company. If the integration fails or the $600 million of cost synergies does not come, value per share can fall. Net leverage will be up to about 4 times EBITDA at closing. Higher interest rates raise the cost of the permanent financing. If cash flow is weaker than planned, debt reduction to about 3 times can take longer, and the credit rating can fall. The deal needs McCormick shareholder approval, antitrust and foreign investment approvals, and the separation of Unilever Foods from Unilever. added: On November 11, 2026, the UK Competition and Markets Authority found that the deal may reduce competition in the UK and said it will open a second-phase review unless the parties offer remedies. A delay or a failed vote costs time and money. McCormick must pay $420 million to Unilever in some cases, or up to $75 million of expenses if its shareholders reject the deal. Consumers buy carefully, and Consumer segment volume and mix fell 1.1% in Q3 2026. Commodity and freight costs rose, partly because of the conflict in the Middle East.
- Recent events
- added: Nov 11, 2026: The UK Competition and Markets Authority ended its first-phase review of the McCormick and Unilever Foods deal. It decided that the deal may be expected to reduce competition in one or more UK markets. The CMA will refer the deal to an in-depth phase 2 investigation unless the parties offer an acceptable undertaking. The CMA has not yet published the full decision. Oct 1, 2026: McCormick reported Q3 2026 results. Net sales grew 17.4% to $2.02 billion, mostly from McCormick de Mexico, and organic sales grew 1.9%. Adjusted EPS was $0.86, against $0.85 a year earlier. Special charges, mostly costs of the Unilever Foods deal and a $43 million impairment, lowered EPS by $0.50. McCormick kept its 2026 adjusted EPS outlook of $3.05 to $3.13. The stock fell 4.9% that day. Sep 24, 2026: McCormick's audit committee dismissed Ernst & Young as auditor, effective after the 2026 annual report, because EY is not expected to be independent after the Unilever Foods deal closes. Sep 9, 2026: At a Barclays conference, McCormick kept its target of $600 million of net cost synergies from the Unilever Foods deal, with two thirds by the second year after closing. The CFO said that McCormick is on track for net leverage below 2.9 times on a stand-alone basis by the end of 2026. Aug 25, 2026: Board member Anne Bramman said that she will resign on November 30, 2026, after she became CFO of Best Buy. Valarie Sheppard became Chair of the Audit Committee on September 1, 2026. Jun 25, 2026: McCormick reported Q2 2026 results. Net sales grew 16.7%, and organic sales grew 1.7%. Adjusted EPS was $0.80, up from $0.69. McCormick kept its 2026 outlook. Apr 28, 2026: McCormick signed a $2.0 billion three-year term loan for the closing of the Unilever Foods deal and cut the bridge loan commitment by the same amount, to $13.7 billion. Apr 15, 2026: McCormick named Andrew Foust, President Americas, as Chief Integration Officer for the Unilever Foods deal. Patrick Davis became Interim President Americas.