McCormick To Acquire Additional 25% Stake In McCormick De Mexico For $750 Mln

(RTTNews) - McCormick & Co., Inc.(MKC), a food company, on Thursday announced that it has signed a definitive agreement to buy an additional 25% stake in its long-standing joint venture, McCormick de Mexico, from Grupo Herdez, S.A.B. de C.V. (HERDEZ.MX, GUZOF) for $750 million.

The transaction is expected to close early in fiscal 2026 and will be funded through cash and debt with little effect on leverage. The company said related transaction costs will weigh on earnings per share.

The deal will raise McCormick's stake in McCormick de Mexico to 75%, strengthening its presence in the Mexican market and supporting expansion across Latin America.

The deal is valued at about 12 times 2025 EBITDA and is expected to be accretive to sales, margins, and adjusted earnings per share from the first year.

The venture was originally established in 1947 and generates about $810 million in annual net sales, with growth projected in the mid-single digits.

McCormick's expertise is expected to drive further growth through new product categories, wider household reach, and expanded distribution in Mexico and Latin America.

On Wednesday, Grupo Herdez closed trading 0.38% higher at MXN 55.19 on the Mexico Stock Exchange.

In the pre-market trading, McCormick & Company is 0.41% higher at $70.17 on the New York Stock Exchange.