McCormick Acquires Additional Stake in McCormick de Mexico for $750 Million

McCormick & Company acquired an additional 25% stake in McCormick de Mexico for $750 million, increasing its ownership to 75%. The deal is expected to boost sales growth and profitability, solidify McCormick's market leadership in Mexico's condiment sector, and provide a platform for further Latin American expansion. The acquisition is valued at 12 times 2025 EBITDA and is projected to close in early fiscal 2026.

McCormick & Company Inc. (MKC) has announced the acquisition of an additional 25% ownership interest in McCormick de Mexico, a joint venture formed in 1947, for $750 million. This strategic move, which will increase McCormick's ownership to 75%, is expected to drive significant growth in the Mexican market and provide a platform for expansion in Latin America.

The acquisition, valued at 12 times 2025 EBITDA, is projected to close in early fiscal 2026. McCormick de Mexico, a prominent food company in Mexico, has a broad portfolio including mayonnaise, spices, marmalades, mustard, hot sauce, and tea, sold under McCormick brands. The company's annual net sales are approximately $810 million, and the transaction is expected to be accretive to adjusted earnings per share in the first year.

Brendan M. Foley, Chairman, President, and Chief Executive Officer of McCormick, stated, "This marks the beginning of an exciting new chapter for McCormick in Mexico. With this expanded ownership, we will advance our global flavor leadership and increase our presence in condiments and sauces." The acquisition will also facilitate further expansion into Latin America, leveraging the strength of the McCormick brand and its extensive expertise in herbs and spices.

The transaction is expected to boost sales growth and profitability, solidifying McCormick's market leadership in Mexico's condiment sector. Mexico's growing demographics, culinary heritage, and evolving consumer preferences present compelling opportunities for McCormick's broad flavor portfolio.

The acquisition is part of a broader strategic plan to scale operations and distribution across Latin America, consistent with McCormick's long-term growth objectives. The company will continue to collaborate with Grupo Herdez, its partner in McCormick de Mexico, to drive growth and innovation in the market.

References:
[1] https://www.ainvest.com/news/definitive-healthcare-corp-shares-rise-5-04-intraday-mccormick-company-announced-acquisition-additional-25-ownership-interest-mccormick-de-mexico-2508/
[2] https://finance.yahoo.com/news/mccormick-advances-flavor-leadership-mexico-103000090.html