McCormick & Company announced it has completed the acquisition of an additional 25% ownership interest in McCormick de Mexico from Grupo Herdez, increasing McCormick’s ownership in the joint venture to 75% and giving it a controlling stake in the business.
The transaction expands a partnership that dates back to 1947, when McCormick and Grupo Herdez formed McCormick de Mexico. McCormick said the increased ownership strengthens its global flavor leadership, creates opportunities for further growth in Mexico, and provides a strategic platform for additional expansion across Latin America.
McCormick funded the $750 million purchase price through a combination of cash on hand and commercial paper. The company had previously announced the agreement to expand its ownership on August 21, 2025.
With majority ownership, McCormick plans to build on McCormick de Mexico’s performance by leveraging the combined capabilities of both partners, including category management, insight-driven innovation, and marketing. The company also said it intends to expand into adjacent categories and increase channel penetration in the Mexican market.
McCormick expects the transaction to be accretive to net sales, adjusted operating margin, and adjusted earnings per share in 2026. The company noted that adjusted operating margin and adjusted earnings per share exclude transaction and integration costs. It also said the deal is expected to have minimal impact on its net debt to adjusted EBITDA ratio.
KEY QUOTES:
“We are excited to acquire majority ownership in McCormick de Mexico, further strengthening our track record of driving shareholder value through strategic acquisitions. With the expanded ownership, we plan to build on McCormick de Mexico’s strong performance by leveraging our combined expertise in category management, insight-driven innovation, and best-in-class marketing to expand in adjacent categories and increase channel penetration. We are proud of our 78-year partnership with Grupo Herdez and look forward to continuing our collaboration and shared success in the years ahead.”
Brendan M. Foley, Chairman, President and Chief Executive Officer
