Packaged Food Industry: Mining spice: a deeper dive on MKC/ULVR

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Packaged Food Industry: Mining spice: a deeper dive on MKC/ULVR

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Packaged Food Industry

Mining spice: a deeper dive on MKC/ULVR

Industry Overview

Charting a path to ~$4.50 in EPS 14 May 2026

Since announcing the proposed Reverse Morris Trust (RMT) of ULVR Foods, McCormick Equity

(MKC) shares are down 15% as investors contemplate transaction complexity, timeline United States

to close and increased leverage. Initially valued at 13.8x EV/EBITDA (based on a $57.84 Food

share price and fixed shares), the transaction is now valued closer to ~11.8x as MKC Peter T. Galbo, CFA

shares have declined since transaction announcement. We remain positive on the Research Analyst

strategic rationale of the deal (complimentary product categories, geographies and BofAS+1 646 743 0175

channel distribution), while acknowledging that catalyst path (aside from quarterly peter.galbo@bofa.com

earnings) is limited until deal closure in mid-2027. That said, we offer updated thoughts Nicolas Ceron >>

Research Analyst

on combined-co pro-forma accretion, which points to ~$4.50 in EPS (Exhibit 1) by end of MLI (UK)

year 3 integration (FY30) and would place MKC shares at 10x EPS on a fully synergized +44 20 7996 4012

nicolas.ceron@bofa.com

basis. MKC has pointed to MSD-HSD EPS accretion in year 1 (BofAe 6%) and mid-high

Yasmine Deswandhy

teens in year 3 (BofAe +17%). We maintain our Buy rating and $65 PO. Research Analyst

BofAS

Geographic opportunities beyond top 5 markets +1yasmine.deswandhy@bofa.com646 855 3745

MKC has identified five key overlapping geographies for combined-co that will make up Chris Downing

nearly half of sales - US, UK, France, Mexico and China. Beyond this we identify a next Research Analyst BofAS