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Stock impact report

McCormick And Unilever Foods: Not A Happy Merger Yet [Seeking Alpha]

Unilever PLC American Depositary Shares (each representing One Ordinary Share) (UL) 
US:NYSE Investor Relations: unilever.com/investor-relations
Company Research Source: Seeking Alpha
The deal values Unilever's business at $44.8 billion and McCormick at $21 billion, with Unilever shareholders receiving 65% equity and $15.7 billion in cash. Synergies of $600 million annually are targeted, but leverage will rise to 4.3x EBITDA, with plans to reduce it to 3x within two years. Despite attractive valuation and synergy potential, I remain cautious due to integration risks, high leverage, and the food industry's poor mega-merger track record. Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More » pixelfit/E+ via Getty Images The investment case surrounding McCormick ( MKC ) changed overnight as the company entered into a complicated deal with Unilever PLC ( UL ) to merge with selected parts of Unilever's food business. The deal is rather complicated, in which Unilever and its shareholders get More on my IG service If you like to see more ideas, please subscribe to the Investing Group "Value in Corpo Show less Read more
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