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The new combined McCormick company will have a gross margin in the mid-40s and a starting operating margin of 21%.
Following the transaction, Unilever will retain a 10% stake in the new McCormick, and Unilever shareholders will own 55% of the combined company.
Unilever will receive $15.7 billion (approximately €14 billion) in cash as part of the transaction with McCormick.
Unilever has announced a €6 billion share buyback program for the 2026-2029 period, funded by proceeds from the McCormick deal.
The merger between Unilever Foods and McCormick is expected to generate €600 million in cost synergies.
Unilever's Liquid IV and Nutrafol brands have each reached nearly $1 billion in revenue in the US.
Unilever's pure-play HPC business is trading at a 20-25% valuation discount compared to its peers.
The proposed separation of Unilever's food business was initiated by an inbound proposal from McCormick.
The combination of Unilever's food business and McCormick will create a new company with $20 billion in revenue.
The combined McCormick company is expected to reduce its leverage from four times to three times net debt to EBITDA within two to three years.
The merger of Unilever Foods and McCormick is estimated to generate €600 million in cost synergies.
McCormick's long-term financial target is to achieve 3% to 5% top-line growth with a 23% to 25% operating margin within 3 to 5 years.