McCormick to acquire larger stake in Mexican joint venture for US$750M
The acquisition will be financed through a mix of cash and debt and is expected to be accretive to adjusted earnings per share within the first year.
USA – McCormick & Co., the global leader in flavor and spices, is set to deepen its footprint in Latin America with a US$750 million deal to acquire an additional 25% stake in McCormick de Mexico, its long-standing joint venture with Grupo Herdez.
The acquisition will raise McCormick’s ownership to 75%, reinforcing its strategic commitment to the Mexican market and broader regional expansion.
Founded in 1947, McCormick de Mexico has become a household name, especially known for its flagship McCormick Mayonesa con Jugo de Limones, a lime-infused mayonnaise beloved for its creamy texture and tangy flavor.
The joint venture also produces a wide range of condiments including mustard, marmalades, hot sauces, spices, and teas, all under the McCormick brand.
“This marks the beginning of an exciting new chapter for McCormick in Mexico,” said Brendan Foley, Chairman, President, and CEO of McCormick & Co.
“With this expanded ownership, we will advance our global flavor leadership and increase our presence in condiments and sauces”.
Grupo Herdez will retain a 25% equity stake and continue to provide sales, distribution, and operational support through its subsidiaries.
The partnership, now in its 78th year, remains a cornerstone of both companies’ regional strategies.
Grupo Herdez’s Chairman and CEO, Héctor Hernández-Pons Torres, emphasised the importance of continuity: “This transaction allows us to participate in future growth opportunities while preserving our scale and depth in the Mexican market”.
McCormick de Mexico currently generates US$810 million in annual net sales, with mid-single-digit growth projections.
Once the deal closes, expected in early fiscal 2026, the condiments and sauces segment will contribute 22% of McCormick’s global net sales, up from 14%.
The acquisition will be financed through a mix of cash and debt and is expected to be accretive to adjusted earnings per share within the first year.
Analysts view the move as a strategic plan to capitalise on emerging market growth, especially as middle-class consumer spending rises across Latin America.
With this expanded stake, McCormick aims to leverage its global flavor expertise and marketing capabilities to scale operations, penetrate new channels, and introduce innovative products tailored to regional tastes.
The deal signals a bold step forward in McCormick’s ambition to lead the global condiments category.
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