McCormick's $750M Stake Expansion Drives 25% Ownership in Mexico Venture Stock Ranks 389th in $230M Trading Volume

On August 21, 2025, McCormick (MKC) saw a 1.70% rise in its stock price, with a trading volume of $230 million, ranking 389th on the day. The company announced a $750 million deal to acquire an additional 25% stake in McCormick de Mexico, a joint venture formed in 1947, increasing its ownership to 75%. This move strengthens its market presence in Mexico and positions the company for expansion across Latin America. The acquisition is expected to boost net sales and adjusted earnings per share in the first year.

The transaction solidifies McCormick’s leadership in condiments and sauces, with the Mexican market contributing 14% of its net sales, projected to rise to 22% post-closure. The joint venture’s flagship product, McCormick Mayonesa con Jugo de Limones, has strong consumer loyalty in Mexico. The deal aligns with the company’s strategy to leverage growth in emerging markets, where Mexico’s expanding middle class and culinary trends present opportunities. The acquisition is also accretive to operating margins and sales growth, with full consolidation of McCormick de Mexico’s $810 million annual net sales.

Financing for the deal will use cash reserves and debt, with minimal impact on McCormick’s leverage ratio. Transaction costs will affect short-term earnings, but the company emphasizes long-term value creation through expanded category management and innovation. The move follows strategic plans outlined in its investor day, focusing on Latin American expansion and operational scaling. The deal is expected to close in early fiscal 2026.

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