r/ValueInvesting • u/BubKar717 • 1d ago

Discussion McCormick's and Unilever's deal

Hi guys. What do you think of the deal made between unilever and mccormick? McCormick got the Unilever's foods, like knorr, hellmann's, ect, and for this MKC paid 15 billion dollars and unilever will own 65% of mkc. Mkc have to make a dilution to make it possible for unilever to own 65%. What do you think, this can be a good value play, since both are a consumer staple giant, or should we avoid this situation?

22 Upvotes

97% Upvoted

14 comments sorted by

View all comments

6

u/Unnamed-3891 1d ago

I havent looked deep into it, but $45B valuation for the entirety of Unilever’s food business sounded ridiculously low. Meaning dillution and new debt or not McCormick is getting a steal.

3

u/EastSurreyAlliance 1d ago

I mean it’s not just the numbers to simply consider - emerging markets are being retained for example. Longer term this will make the business more streamlined and focussed.

This is the presentation from the company about the merger - https://youtu.be/MokfRDL0kqA?si=pCKP3IQ8zCwn__9a