McCormick & Company is advancing its international footprint with the McCormick de Mexico acquisition, reinforcing its leadership in Latin America’s condiments and sauces market.
McCormick signed a $750 million agreement with Grupo Herdez to acquire an additional 25% ownership in McCormick de Mexico. According to a press release, the deal raises McCormick’s ownership to 75%, securing majority control.
The agreement, pending regulatory approval, positions the company for stronger growth in Mexico and serves as a springboard for expansion across Latin America.
Founded in 1947, McCormick de Mexico generates $810 million in annual sales through products including mayonnaise, spices, marmalades, mustard, hot sauce, and tea.
“This marks the beginning of an exciting new chapter for McCormick in Mexico,” said Brendan Foley, McCormick’s chairman, president, and CEO. “With this expanded ownership, we will advance our global flavor leadership and increase our presence in condiments and sauces.”
Condiments and Sauces Lead Expansion
The McCormick de Mexico acquisition boosts the role of condiments and sauces in McCormick’s global portfolio. After closing, the segment’s contribution to net sales will rise from 14% to 22%.
Mayonnaise remains the anchor of the Mexican portfolio. McCormick Mayonesa con Jugo de Limón, celebrated for its creamy texture and lime flavor, continues as a household staple.
Foley emphasized that strong consumer loyalty, paired with McCormick’s innovation, will allow for further category expansion and new distribution channels in Mexico and beyond.
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Longstanding Partnership with Grupo Herdez
Grupo Herdez, McCormick’s joint venture partner for nearly 80 years, will continue its collaboration under the new ownership structure, stated the company.
“We are proud of the nearly 80 years of productive partnership we have built with McCormick,” said Héctor Hernández-Pons Torres, CEO of Grupo Herdez. “This milestone will enable the McCormick brand to reach even more consumers across Latin America.”
Both companies expect to leverage their combined expertise in innovation, marketing, and supply chain capabilities to accelerate regional growth.
Mexico as a Strategic Growth Market
Mexico plays a critical role in McCormick’s emerging market strategy. Rising income levels and evolving consumer tastes are driving demand for premium condiments and sauces.
The country’s deep culinary traditions blend with openness to global flavors, creating opportunities for McCormick to expand its flavor portfolio. Mexico also serves as a regional hub, giving the company a strategic platform for Latin American growth.
The $750 million McCormick de Mexico acquisition represents about 12 times the joint venture’s projected 2025 EBITDA. McCormick expects the deal to close in early fiscal 2026, funded through cash and debt.
The acquisition will immediately add to net sales, operating margins, and adjusted earnings per share in the first year. By consolidating McCormick de Mexico’s results, McCormick expects long-term shareholder value and stronger financial performance.
McCormick’s Global Vision
With annual sales exceeding $6.7 billion across 150 countries, McCormick continues to expand in high-growth markets. The McCormick de Mexico acquisition reinforces its strategy to grow household penetration, scale operations, and strengthen its condiments and sauces business worldwide.
“This transaction creates a strategic platform for scaling our operations and distribution across Latin America,” Foley said. “It represents another step toward our goal of delivering sustainable growth and long-term shareholder value.”