GREENWICH, CONN. — Private equity firm L Catterton has entered into a definitive agreement to acquire Cholula, a leading producer and distributor of hot sauce. Financial terms of the transaction were not disclosed.
Launched in the United States in 1989, Cholula features a blend of piquin and arbol peppers that pairs well with a broad range of global cuisines. Following the completion of the transaction, Cholula will become a standalone enterprise. The company manufactures six varieties of hot sauce in Jalisco, Mexico.
“Cholula represents a compelling opportunity to invest in a premium brand with an established reputation for quality and authenticity in the growing hot sauce category,” said Scott Dahnke, global co-chief executive officer of L Catterton. “We look forward to partnering with Cholula’s talented management team to capitalize on the brand’s immense whitespace opportunity in the years to come.”
Current and previous investments by L Catterton include Kettle Brands, Zarbee’s, Home Chef, Ainsworth Pet Nutrition, Plum Organics, Odwalla, Beanitos, Ferrara Candy Co., Sweet Leaf Tea and others.
The transaction is subject to customary approvals and closing conditions.