MCCORMICK & CO INC acquired Cholula Hot Sauce for $800 million, a transaction completed in November 2020, structured as all cash.
Cholula Hot Sauce operates in Consumer - Condiments / Hot Sauce, is based in United States (Mexican-heritage brand). Cholula is a premium hot sauce brand delivering authentic Mexican flavor, acquired from private equity firm L Catterton. The brand is an iconic premium player outpacing category growth in the high-growth hot sauce category.
The acquisition of Cholula accelerates McCormick's growth opportunities within its condiment platform and broadens its portfolio in the hot sauce category. Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth.
Iconic premium brand outpacing category growth in the attractive, high-growth hot sauce category; complementary to McCormick's existing condiment and Frank's RedHot portfolio. Broadens offering in the high-growth hot sauce category to consumers and foodservice operators; opportunity to grow via category management, brand marketing and channel expansion. McCormick global branded flavor portfolio (Consumer segment)
The acquisition of Cholula accelerates McCormick's growth opportunities within our condiment platform and broadens our portfolio in the hot sauce category with the addition of the Cholula brand. Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth.Lawrence E. Kurzius, Chairman, President & CEO, McCormick & Company
In the last 19 months, with the support, resources, and operational expertise of the L Catterton team, we established Cholula as a high-performing standalone business, vastly improved our commercial execution efforts, and pivoted our foodservice strategy to position Cholula for long-term growth and success.Maura Mottolese, Chief Executive Officer, Cholula
Advisory firms were not disclosed for this transaction.