L Catterton, a global consumer-focused private equity firm based in Greenwich, Connecticut, is acquiring Cholula, a producer and distributor of hot sauce. The acquisition will allow Cholula to become a standalone enterprise. The terms of the transaction have not been disclosed.
Cholula hot sauce was introduced into the U.S. in 1989. It is created from a generations-old recipe featuring arbol and piquin peppers and a blend of spices. The sauce, available in six varieties, is manufactured 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-CEO 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.”
“We are honored to be entrusted with the next chapter in Cholula’s evolution, and we are incredibly excited about the possibilities that lie ahead for the brand,” said Matt Leeds, principal at L Catterton.
L Catterton has significant experience investing globally in CPG brands such as The Honest Co., Kettle Brands, Zarbee’s, Home Chef, Ainsworth Pet Nutrition, Plum Organics, Odwalla, Beanitos, Ferrara Candy Co. and Sweet Leaf Tea, as well as other consumer brands such as Restoration Hardware, Peloton, Sandro/Maje, Caribou Coffee and Equinox.
L Catterton has more than $15 billion of equity capital across six fund strategies in 17 offices globally. It has a team of more than 150 investment and operating professional partners with management teams around the world. Since 1989, the firm has made more than 200 investments in leading consumer brands.