McCormick & Co. has announced plans to buy Cholula, a popular Mexican hot sauce, for $800 million.
McCormick announced Nov. 24 that it had reached an agreement with L Catterton, the private equity fund that bought Cholula in 2019. Cholula will join McCormick’s portfolio of branded products, which includes Frank’s RedHot, another brand of hot sauce.
McCormick estimated Cholula’s sales at about $96 million. Sources told the Wall Street Journal that L Catterton expects to make four times what it had invested in the company.
“Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth,” McCormick CEO Lawrence Kurzius said in a statement.
