The Greenwich-based private equity firm L Catterton has sold the Mexican hot sauce producer and distributor Cholula to McCormick & Co. Inc., the Baltimore food company, for $800 million.
Manufactured in Chapala, a town in the Mexican state of Jalisco, Cholula is named after the 2,500-year-old city that is Mexico”™s oldest inhabited municipality. The product line was introduced to the U.S. market in 1989 and became identifiable for its distinctive mix of piquin and arbol peppers and its colorful packaging capped with a round wooden top.
L Catterton acquired Cholula in December 2018 for an undisclosed sum and operated it as a standalone enterprise. According to a statement issued by L Catterton, during the past two years “Cholula grew household penetration by over 50% and gained meaningful market share.”
McCormick & Co. specializes in spices and condiments. Its current hot sauce products are sold under the Frank”™s Red Hot and Old Bay brands.
