RICHMOND, VA. — Condiments, seasonings and spices maker Sauer Brands Inc. is entering into a new category with the acquisition of Mateo's Gourmet Salsa. Terms of the transaction were not disclosed.
Based in the Dallas suburb of Frisco, Texas, Mateo’s was founded in 2010 by Andrew Robbins. The brand’s lineup includes cantina style salsa, hatch chile salsa, habanero salsa and salsa verde, along with two varieties of Bloody Mary mix. The products are marketed across the country through retailers such as Costco, Walmart, Target, Publix and Kroger.
The deal is part of Sauer’s larger portfolio expansion strategy since being acquired by Falfurrias Capital Partners in 2019. The company last year added Chicago Custom Foods LLC, creator of Kernel Season’s popcorn seasonings, to its portfolio of brands, which also includes Duke’s Mayonnaise and The Spice Hunter.
“We are incredibly excited to add Mateo's Gourmet Salsa to our growing family of highly differentiated and inspired flavors,” said Martin Kelly, president and chief executive officer of Sauer Brands. “There are many synergies across our product lines and we see significant growth potential in the salsa category, so it's a great fit for our organization.”
The acquisition is the latest example of Falfurrias’ “industry first” investment approach, which aims to build differentiated and sustainable companies through a combination of data, research and expertise, added Chip Johnson, a partner at the Charlotte, NC-based firm.
“We have a tremendous packaged foods platform in Sauer Brands, and from the early days of our investment, our world-class leadership team, led by Martin Kelly, identified salsa as the most attractive category for future expansion,” he said.