Activist hedge fund Toms Capital Investment Management has accumulated a significant position in McCormick & Co, as the US food manufacturer moves forward with its planned acquisition of Unilever’s food business, according to a report by Reuters citing unnamed people familiar with the matter.
The stake-building by Benjamin Pass’s firm comes during a period of heightened investor scrutiny around McCormick’s strategic direction following the announced transaction, which would create a major global sauces and seasonings group spanning brands such as Hellmann’s and French’s mustard.
While the size of the position and the fund’s intentions remain unclear, market participants say the investment reflects growing hedge fund interest in situations where large-scale mergers are expected to reshape valuation dynamics and capital allocation priorities.
Toms Capital is known for taking a relatively discreet approach to activism, typically engaging privately with management teams rather than launching public campaigns. The firm has previously focused on event-driven and special situation investments across consumer and financial services sectors.
McCormick announced plans in late March to acquire Unilever’s food division, a deal expected to significantly expand its global footprint and category reach. The transaction is projected to close by mid-2027, subject to regulatory approvals and shareholder consent at McCormick, while Unilever does not require a shareholder vote.
Since the announcement, both companies’ shares have come under pressure, with McCormick underperforming broader consumer staples benchmarks and Unilever also lagging European sector indices. Investors have cited uncertainty around timing, execution and integration as key factors weighing on sentiment.
Despite short-term weakness, McCormick has historically traded at a premium to peers, supported by resilient demand for its spice and flavour portfolio. However, the pending acquisition has introduced a degree of volatility as markets reassess earnings visibility over the medium term.
Some institutional investors are understood to have expressed general support for the strategic rationale of the deal, while also encouraging management to accelerate execution timelines where possible.
Toms Capital has a track record of taking positions in companies undergoing strategic change, including prior activism around healthcare and financial services groups, often focusing on transaction outcomes and portfolio optimisation.
More recently, the firm has also engaged with other US financial institutions on strategic alternatives, including calls for potential divestments or broader corporate restructuring initiatives.
