McCormick raises stake in McCormick de Mexico to 75% in US$750m deal
Acquisition strengthens McCormick’s control of its Mexican joint venture and supports regional expansion plans.
MEXICO – McCormick & Company, a global provider of flavour solutions, has completed the acquisition of an additional 25% ownership stake in McCormick de Mexico from Grupo Herdez, increasing its total ownership in the business to 75%.
The transaction, valued at US$750 million, strengthens McCormick’s position in the Mexican market and supports its broader strategy to expand across Latin America.
The acquisition was initially announced in August 2025 and builds on a long-standing partnership between McCormick and Grupo Herdez that began in 1947.
By increasing its ownership in the joint venture, McCormick aims to apply its global capabilities in category management, innovation and brand marketing to accelerate growth and deepen its presence in the region.
McCormick de Mexico has established a strong market position, supported by a portfolio of well-known brands and locally relevant product offerings.
Brendan M. Foley, chairman, president and chief executive officer of McCormick, said the transaction aligns with the company’s strategy of driving shareholder value through targeted acquisitions.
He noted that majority ownership will allow McCormick to further enhance product development, expand into adjacent categories and strengthen execution in the Mexican market.
The company expects the acquisition to contribute positively to its financial performance in 2026. McCormick said the deal is anticipated to increase net sales, adjusted operating margin and adjusted earnings per share, excluding integration-related costs.
The company also indicated that the transaction is expected to have a limited effect on its net debt to adjusted EBITDA ratio.
McCormick said the expanded ownership supports its long-term growth objectives, particularly as global demand for flavour continues to rise across food and beverage categories. The company plans to leverage its scale, innovation capabilities and consumer insights to meet evolving local preferences in Mexico and the wider region.
Further details on the financial impact of the transaction, including its effect on fiscal 2026 performance, are expected to be provided during McCormick’s fourth-quarter earnings call scheduled for 22 January 2026.
McCormick’s global portfolio includes brands such as McCormick, French’s and Frank’s RedHot, serving both consumer and flavour solutions customers worldwide.
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