Investing.com - Financial Markets Worldwide

McCormick to buy additional 25% stake in Mexican unit for $750 million

Published 21/08/2025, 11:58
© Reuters.
MKC
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Investing.com -- McCormick & Company (NYSE:MKC) is set to acquire an additional 25% stake in McCormick de Mexico from Grupo Herdez (BMV:HERDEZ) for $750 million, increasing its ownership in the Mexican unit to 75%.

The transaction, expected to close in early 2026, represents an acquisition multiple of approximately 12 times 2025 EBITDA and annual recurring management fees.

The spice and seasoning company plans to finance the deal through a combination of cash on hand and debt, with minimal impact to its net debt to adjusted EBITDA ratio.

McCormick will incur certain transaction fees that will impact earnings per share.

The company anticipates the acquisition will be accretive to net sales, adjusted earnings per share, and adjusted operating margin in the first year.

This strategic move provides McCormick with a platform for scaling operations and distribution across Latin America.

Goldman Sachs is serving as financial adviser to McCormick for this transaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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