McCormick & Company, which owns a portfolio of spices, seasoning mixes, condiments, and other flavoring products, has announced it will acquire Cholula hot sauce from PE firm L Catterton.
Cholula’s annual net sales are just below $100 million and is expected to be accretive to EPS in 2021. It will also add to McCormick’s already strong position in the category, as it already owns the #1 hot sauce brand in the United States, Frank’s RedHot.
McCormick plans to leverage its expertise to ramp up Cholula’s growth, saying in a statement that they “plan to grow Cholula by optimizing category management and brand marketing, while also expanding channel penetration.”