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McCormick & Company has agreed to acquire an additional 25% stake in McCormick de Mexico from long-time joint venture partner Grupo Herdez for $750 million, giving the US flavour manufacturer a controlling 75% interest in the business.

McCormick said the deal will strengthen its position in the Mexican condiments and sauces market and provide a platform for further expansion in Latin America.

McCormick de Mexico, founded in 1947, generates annual net sales of around $810 million, led by its flagship McCormick Mayonesa con Jugo de Limones. Its portfolio also includes spices, marmalades, mustard, hot sauce and tea. The business is expected to deliver mid-single-digit sales growth.

McCormick & Company's CEO, Brendan M Foley, said: "This marks the beginning of an exciting new chapter for McCormick in Mexico. With this expanded ownership, we will advance our global flavour leadership and increase our presence in condiments and sauces. The McCormick brand has been a household staple in Mexico for 78 years, with market leadership in high-growth categories, most notably in mayonnaise."

He continued: "In addition, the brand commands strong loyalty among Mexican consumers and foodservice operators. The strength of the brand and its remarkable track record combined with our differentiated global flavor expertise and capabilities will enable us to drive further growth in Mexico, an attractive and high growth market."

"We have had a long and successful partnership with Grupo Herdez, and we look forward to continuing our collaboration. With the expanded ownership of McCormick de Mexico, we plan to build upon their strong results by leveraging our combined expertise in category management, insight-driven innovation as well as best-in-class marketing to expand in adjacent categories and increase channel penetration. Additionally, this transaction creates a strategic platform for scaling our operations and distribution across Latin America, consistent with the strategic plans we laid out at Investor Day."

Grupo Herdez's CEO, Héctor Hernández-Pons Torres, added: "This milestone will enable the McCormick brand, with its rich heritage and diverse flavor portfolio, to reach even more consumers across Latin America. With McCormick's extensive expertise in herbs and spices, condiments and sauces and global flavour leadership, we are excited to capitalise on new opportunities and achieve even greater success together."

The transaction, subject to regulatory approval and customary closing conditions, is expected to complete in early fiscal 2026.

Top image: @ McCormick