McCormick Secures Majority Control of Mexico Joint Venture with $750m Stake Increase

Global flavour giant McCormick & Company has successfully completed the acquisition of an additional 25% ownership interest in McCormick de Mexico from its long-time joint venture partner, Grupo Herdez.

The transaction, finalised for a purchase price of $750 million, brings McCormick’s total ownership stake to 75%, effectively granting it majority control over the entity.

Strategic Rationale and Regional Expansion

Initially disclosed on 21 August 2025, the deal represents a significant evolution of a partnership that dates back to 1947. The increased stake is designed to solidify McCormick's foothold in the high-growth Mexican market and serve as a strategic bridge for further expansion throughout Latin America.

By assuming a majority position, McCormick intends to leverage its global expertise in category management and brand marketing to drive deeper penetration in the region.

Brendan M. Foley, Chairman, President, and CEO of McCormick, commented on the strategic value of the deal:

“We are excited to acquire majority ownership in McCormick de Mexico, further strengthening our track record of driving shareholder value through strategic acquisitions. With this expanded ownership, we plan to build on McCormick de Mexico's strong performance by enhancing our product offerings and expanding into adjacent categories.”

Financial Impact and Outlook

The transaction is projected to be accretive to the company's fiscal 2026 performance. McCormick expects positive contributions to:

Net Sales
Adjusted Operating Margin
Adjusted Earnings Per Share (EPS) (excluding integration costs)

The company also noted that it anticipates minimal impact on its Net Debt to Adjusted EBITDA ratio as a result of the purchase.

McCormick is scheduled to provide detailed financial guidance for fiscal 2026, incorporating the specific effects of this acquisition, during its fourth-quarter earnings call on 22 January 2026.