Richmond, Virginia-based Sauer Brands Inc., makers of flavor-enhancing condiments, seasonings and spices including Duke’s Mayonnaise, Kernel Season’s and The Spice Hunter, has acquired Mateo’s Gourmet Salsa, one of the leading independent brands in the shelf-stable salsa category. Terms were not disclosed.
The deal represents Sauer’s entry into the salsa business and is an extension of the company’s product portfolio expansion strategy since being acquired by Charlotte-based Falfurrias Capital Partners in 2019. This is the second add-on investment for Sauer and Falfurrias, having acquired popcorn seasoning brand Kernel Season’s in 2020.
“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 CEO 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.”
Based in the Dallas suburb of Frisco, Texas, Mateo’s was created in 2010 by Andrew Robbins, who decided to market the homemade salsa his father created when he could not find one available in stores that met his standards. Mateo’s all-natural line of products is marketed across the country through such retailers as Costco, Walmart, Target, Publix and Kroger.
“It has been an amazing journey building our brand and seeing it become one of the largest independently owned salsas in the country,” said Robbins. “Joining with a company like Sauer Brands, which has so many resources and such an impressive track record, is extremely gratifying, and I can’t wait to see what the Mateo’s brand will achieve during this next phase of its growth.”
Sauer’s acquisition of Mateo’s is the latest example of Falfurrias’ “Industry First” investment approach which combines data, research and expertise to identify attractive industries and partner with experienced advisors to build differentiated and sustainable companies.
“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,” said Falfurrias partner Chip Johnson. “In Mateo’s, we’ve found the perfect addition to our portfolio – another high-growth, iconic brand that consumers adore.”
Sauer Brands Inc. was founded as The C.F. Sauer Co. in 1887, in Richmond, Virginia. The company’s manufacturing facilities are in Richmond, Virginia; Mauldin, South Carolina; New Century, Kansas; and San Luis Obispo, California.