McCormick & Company (NYSE:MKC) announced plans to acquire an additional 25% stake in McCormick de México from Grupo Herdez (USOTC:GUZOF) for $750 million, increasing its ownership in the Mexican subsidiary to 75%.
The deal, which is expected to close in early 2026, implies an acquisition multiple of roughly 12 times projected 2025 EBITDA plus annual recurring management fees.
McCormick intends to fund the transaction using a mix of cash on hand and debt, aiming for minimal impact on its net debt-to-adjusted EBITDA ratio. Certain transaction-related fees will affect earnings per share.
The company expects the acquisition to be accretive to net sales, adjusted EPS, and adjusted operating margins during the first year of ownership.
This strategic investment positions McCormick to expand operations and distribution across Latin America, strengthening its regional presence.
Goldman Sachs is advising McCormick on the transaction.
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