McCormick, the US spice and seasoning firm, has entered into an agreement to acquire Cholula Hot Sauce from L Catterton for $800 million in cash.
Cholula Hot Sauce is described as a premium hot sauce brand in six varieties of spicy Mexican flavours. It is claimed to be made using high-quality ingredients based on a 100-year old recipe comprising a blend of fresh peppers and regional spices.
According to McCormick, the acquisition will accelerates its growth opportunities in the condiment sector, increasing its offering to both retail and foodservice consumers.
Lawrence E Kurzius, chairman, president and chief executive officer, at McCormick said: “McCormick has a history of creating value through acquisitions. We have a proven track record for achieving our plans and accelerating the performance of acquired brands. We plan to grow Cholula by optimizing category management and brand marketing, while also expanding channel penetration, making McCormick the perfect home for the Cholula brand. As we remain focused on growth and creating long-term shareholder value, we are confident Cholula is a great strategic addition to the McCormick portfolio”.