McCormick: A Merger With Unilever's Food Business Will Drive Growth

McCormick & Company is merging with Unilever's food business, creating a global leader in spices, condiments, and flavors. MKC is significantly undervalued, trading at ~17.5x 2026E EPS versus a 5-year average of 27–28x, with a fair value estimate of $68.20. The merger brings higher leverage (4.0x), integration risks, and dilution, but is expected to deliver 3–5% sales growth and 23–25% operating margins by year three.