Houlihan Lokey is pleased to announce that Cholula Food Co. (Cholula), a portfolio company of L Catterton, has been acquired by McCormick & Company, Inc. (McCormick) for $800 million. The transaction closed on November 30, 2020.
Cholula is one of the most beloved and sought-after hot sauce brands in North America. The company’s delicious hot sauce is created from a complex family recipe handed down through many generations, blending carefully selected árbol and piquín peppers with an array of regional Mexican spices. Cholula’s unique recipe is celebrated for its robust flavor with just the right amount of heat, versatility far beyond the everyday condiment, and ability to complement a wide array of global cuisines. Its distinctive wooden cap and artistic yellow label are testaments to the quality tradition of Mexican artisanship, and each bottle of Cholula is crafted with care in Jalisco, Mexico. Introduced into the United States in 1989, Cholula’s hot sauce now comes in six different varieties.
McCormick is a global leader in flavor. It manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the entire food industry, including e-commerce channels, grocery, food manufacturers, and foodservice businesses. The company’s vast portfolio of products includes well-known consumer brands such as Frank’s RedHot and French’s. McCormick continues to expand its product portfolio to meet the evolving tastes and needs of consumers around the world. The 130+ year-old company has more than 12,000 employees and sells its products in over 150 countries and territories around the globe.
L Catterton invests in leading consumer brands across all segments of the consumer industry. With approximately $20 billion of equity capital across seven fund strategies in 17 offices globally, it is the largest and most experienced consumer-focused private equity firm in the world. L Catterton’s team of nearly 200 investment and operating professionals is dedicated to implementing strategic plans to foster growth for emerging middle-market companies, leveraging deep category knowledge, operational excellence, and a broad partnership network of experts. Over the last 30 years, the company has made more than 200 investments in leading consumer brands.
This deal represents another successful transaction for Houlihan Lokey in the food and beverage industry.
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