McCormick & Co.'s (NYSE:MKC) stock inched higher on Friday, climbing about 0.4% as market commentary indicated that activist investor Toms Capital Investment Management had built a notable holding in the seasoning and condiments firm. The precise scale of the position has not been made public.
The investment by Toms Capital, which is managed by Benjamin Pass, reportedly occurred during the second quarter. That timing comes after McCormick disclosed on March 27 that it planned to acquire the food business of Unilever (LON:ULVR). Participants in discussions about the stake were not authorized to speak on the record.
Toms Capital is known for preferring a low-profile approach to activism, favoring private engagement over high-visibility public campaigns. At this stage, observers do not know what specific changes the fund may press McCormick to pursue.
If completed, McCormick's proposed takeover of Unilever's food division would combine the companies into a roughly $65 billion sauce-and-spice enterprise, bringing together brands that include Hellmann's mayonnaise and French's mustard. The transaction is currently expected to close by mid-2027, but that timetable is contingent on regulatory clearances and approval from McCormick shareholders.
Since the deal announcement, shares of both companies have faced downward pressure as investors weighed the extended time horizon required to complete the acquisition. McCormick has been meeting with institutional investors about the plan; those investors have communicated that while they acknowledge the strategic rationale, they want the process to move faster, according to a separate person familiar with the conversations.
Summary of developments:
- McCormick's stock rose modestly following reports that Toms Capital built a stake.
- The activist fund's holding and its objectives have not been disclosed.
- McCormick's proposed acquisition of Unilever's food business would create an estimated $65 billion combined company, subject to approvals and regulatory review, with an expected close by mid-2027.
The situation contains several open questions for investors and market watchers, including the unknown magnitude of the stake, the specific changes an activist investor might seek, and the timing and regulatory path for the Unilever transaction. These factors have contributed to recent volatility in both companies' share prices.