McCormick & Company Inc. announces the acquisition of an additional 25% ownership in McCormick de Mexico.
The strategic move aims to expand McCormick's presence in condiments and sauces in emerging markets.
The transaction is expected to drive net sales, adjusted operating margin, and adjusted EPS accretion in the first year.
Strategic Acquisition
Acquisition of 25% ownership in McCormick de Mexico from Grupo Herdez for $750 million.
Market Expansion
Opportunities for further growth in the Mexican market and strategic platform for expansion in Latin America.
Product Portfolio
McCormick de Mexico's portfolio includes mayonnaise, spices, marmalades, mustard, hot sauce, and tea under McCormick brands.
Growth Expectations
Annual net sales of McCormick de Mexico approximately $810 million with mid-single digits growth expectations.
Shareholder Value
Anticipated increase in Net Sales contribution from 14% to 22% through the acquisition.
- Expanded ownership in Mexico solidifies mayonnaise as a core product, driving growth in condiments and sauces portfolio.
- Mexico's demographic and economic growth present opportunities to connect with evolving consumer preferences and drive consumption growth.
McCormick's acquisition in Mexico signifies a new chapter in flavor leadership, promising growth and market expansion opportunities in the Latin American region.