McCormick is set to buy the hot sauce maker Cholula for an estimated $800 million. The spice specialist McCormick will be buying the company from private-equity firm L Catterton in cash.
“In a category that continues to benefit from a number of strong secular tailwinds and attractive consumer trends, Cholula’s best-in-class team and refocused business strategy have positioned the company as a clear leader in a large and growing segment,” – Scott Dahnke, CEO of L Catterton
McCormick believes Cholula will pair well with its portfolio of seasonings and other products. Cholula does just under $100 million in sales annually. McCormick believes they increase sales by at least 5% in the next few years.
As a brand, Cholula’s focus now will be to generate more consumer awareness and loyalty.