Unilever (ULVR) investor relations material

Deal rationale and strategic fit

• Separation creates two focused leaders: a pureplay HPC business and a global flavors powerhouse with McCormick, leveraging complementary portfolios, iconic brands, and global distribution for growth and innovation.

• The new HPC entity will focus on beauty, wellbeing, personal care, and home care, targeting higher growth, premium, and digital-first categories.

• The deal unlocks value, simplifies portfolios, and accelerates strategies toward premium, science-led innovation and category leadership.

• McCormick was chosen for its R&D expertise, integration track record, and strategic fit, with the proposal initiated by McCormick.

• Industry dynamics and internal restructuring have made the separation viable, with both businesses now operating as standalone organizations.

Financial terms and conditions

• The transaction values Unilever Foods at $45 billion (3.6x sales, 13.8x EBITDA), with Unilever and its shareholders receiving $15.7 billion in cash and 65% equity in the combined foods company.

• Unilever shareholders will own 55.1% of the new entity, Unilever retains a 9.9% stake (1-year lock-in), and McCormick shareholders own 35%.

• The deal is structured as a Reverse Morris Trust, intended to be tax efficient and tax-free in the U.S.

• Proceeds will be used to pay down debt, cover separation and tax costs, and fund a €6 billion share buyback from 2026-2029.

Synergies and expected cost savings

• $600 million in annual run-rate cost synergies expected within three years, mainly from procurement, manufacturing, logistics, and SG&A.

• $100 million in incremental cost and revenue synergies to be reinvested for growth.

• Synergies derived from operational overlaps, supplier consolidation, and logistics efficiencies.

• One-time costs to achieve synergies estimated at $300 million.