McCormick Enhances Market Presence by Acquiring Majority Stake in McCormick de Mexico

McCormick Completes Acquisition of Majority Interest in McCormick de Mexico

On January 2, 2026, McCormick & Company Inc., a prominent name in the global flavor industry, declared the completion of its acquisition of an additional 25% ownership in McCormick de Mexico from Grupo Herdez. This acquisition raises McCormick's ownership stake in the joint venture, established in 1947, to a substantial 75%. The initial agreement to enhance its ownership was announced on August 21, 2025.

This strategic move not only fortifies McCormick's leadership in the flavor sector but also paves the way for significant growth opportunities in the burgeoning Mexican market. With a purchase price set at $750 million, McCormick leveraged both existing cash and commercial paper to fund the acquisition.

Brendan M. Foley, Chairman, President, and CEO of McCormick, expressed enthusiasm regarding the acquisition, highlighting the company’s commitment to creating shareholder value through well-planned acquisitions. He stated, “We are excited to acquire majority ownership in McCormick de Mexico, further strengthening our track record of driving shareholder value through strategic acquisitions.” Foley further elaborated on the company’s plans to optimize the performance of McCormick de Mexico by utilizing the combined expertise in category management, innovation driven by market insights, and top-tier marketing strategies to penetrate adjacent categories and increase brand presence across various channels.

The collaboration with Grupo Herdez, which spans 78 years, remains a vital component of McCormick's operations, fostering synergistic growth and innovation. The CEO emphasized a forward-looking approach, illustrating plans aimed at enhancing sales and earnings through strategic initiatives that capitalize on market trends in flavor demand.

Financially, McCormick anticipates that this acquisition will positively impact net sales and operational margins in 2026, projecting adjusted earnings to be bolstered by the added revenues. The expected outcomes are deemed to exclude costs associated with the transaction as well as integration expenses, ensuring that the financial metrics remain robust and—importantly—maintaining minimal disruptions to McCormick's Net Debt to Adjusted EBITDA ratio.

In conjunction with the acquisition, McCormick will provide updated fiscal guidance on January 22, 2026, during their fourth quarter earnings call, outlining how this significant investment will fit into the broader strategic vision for the company.

The acquisition's impact resonates with McCormick's ambitions to strengthen its market position in Latin America, expanding its capabilities in brand marketing, product development, and customer engagement within the condiment and sauces sector. This is particularly timely as consumer trends increasingly lean towards flavorful and quality food products, paving the way for further penetration and expansion in these rapidly evolving markets.

With a brand portfolio featuring renowned names such as French's, Frank's RedHot, and Old Bay, McCormick remains poised to accelerate its growth trajectory through this acquisition while also supporting its long-term sustainability goals. Established in 1889 and headquartered in Hunt Valley, Maryland, McCormick's mission continues to focus on uniting people with flavors that are healthy, sustainable, and enjoyable.

In summary, the completion of this acquisition is anticipated to significantly bolster McCormick's strategic positioning in Latin America. As they continue to innovate and engage with consumer preferences shaped by culinary diversity and flavor exploration, McCormick's partnership with McCormick de Mexico stands to enhance not only local market offerings but also contribute to the global flavor leadership that defines the company today.