McCormick & Company completed the purchase of an additional 25% stake in its joint venture McCormick de Mexico, raising its ownership to 75% and valuing the transaction at $750 million. The deal closed on January 2 2026 and was financed with a combination of cash on hand and commercial paper.
The transaction is expected to be accretive to McCormick’s net sales, adjusted operating margin, and adjusted earnings per share for fiscal 2026. Because the joint venture already generates roughly $810 million in annual net sales, the additional stake is projected to add incremental revenue and margin upside while keeping the company’s debt‑to‑EBITDA ratio largely unchanged.
By consolidating control of McCormick de Mexico, the company gains greater flexibility in category management, supply‑chain integration, and marketing initiatives. The move positions McCormick to accelerate growth in the Mexican market—a high‑growth region for hot sauces and other flavor products—and provides a strategic platform for expansion across Latin America, where rising incomes and evolving consumer tastes are driving demand for premium condiments.
Brendan M. Foley, Chairman, President and CEO, said the acquisition “strengthens our track record of driving shareholder value through strategic acquisitions” and that the expanded ownership will allow the company to build on the joint venture’s strong performance by leveraging combined expertise in category management, insight‑driven innovation, and best‑in‑class marketing to expand into adjacent categories and increase channel penetration.
McCormick de Mexico was formed in 1947 as a joint venture with Grupo Herdez, a partnership that has spanned nearly eight decades. The acquisition preserves that long‑standing relationship while giving McCormick a majority stake that enhances its ability to execute on its emerging‑market strategy and to capitalize on Mexico’s role as a gateway to broader Latin America.
Analysts had previously adjusted their price targets in the months leading up to the deal, reflecting concerns about inflation, tariff headwinds, and incremental costs, but the consensus remained supportive of McCormick’s long‑term growth prospects.
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