McCormick Takes Majority Control in Mexico JV: Growth Lever in 2026?

McCormick & Company, Inc. (MKC) has completed the acquisition of an additional 25% ownership interest in McCormick de Mexico, increasing its stake to 75%, gaining majority control of the long-established joint venture. The $750 million transaction was funded through a mix of cash on hand and commercial paper.

The increased ownership strengthens McCormick’s global flavor leadership and expands its presence in the Mexican market, which management described as an attractive growth opportunity. Majority ownership of McCormick de Mexico, a joint venture founded in 1947 with Grupo Herdez, enhances the company’s ability to build on recent performance and drive growth.

The company believes the deal should contribute positively to revenues, margins and earnings in 2026, with adjusted figures excluding transaction and integration-related costs. The company also indicated that the acquisition is expected to have a minimal impact on its net debt-to-adjusted EBITDA ratio.

Beyond the immediate financial impact, the acquisition broadens McCormick’s ability to pursue expansion opportunities across Latin America. With majority ownership, the company can more fully leverage its capabilities in insight-driven innovation, marketing and category management to enter adjacent categories and increase penetration across multiple channels.

Overall, the transaction reflects McCormick’s continued focus on disciplined capital allocation while leveraging its established category expertise and innovation capabilities. The company’s investments in innovation, expanded distribution and brand marketing have supported share gains in core categories, including spices, seasonings and sauces. These initiatives are helping McCormick stay aligned with evolving consumer behaviors such as home cooking, flavor exploration and health-focused meal preparation.

MKC’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #2 (Buy) company have gained 3.9% in the past month against the industry’s 5.4% decline. MKC has also outperformed the broader Consumer Staples sector and the S&P 500 index’s growth of 0.4% and 0.2%, respectively, during the same period.

MKC Stock's Past Month Performance

Is MKC a Value Play Stock?

McCormick currently trades at a forward 12-month P/E ratio of 20.33, above the industry and the sector’s average of 14.28 and 16.23, respectively, indicating the stock is not a traditional value play on a relative earnings multiple basis. However, MKC’s premium valuation reflects its innovation-led strategy and expanding distribution footprint, which are translating into broad-based, volume-driven organic sales growth across key regions and categories.

MKC P/E Ratio (Forward 12 Months)

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This article originally published on Zacks Investment Research (zacks.com).

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