L Catterton, a Greenwich-based private equity firm, is acquiring the hot sauce producer and distributor Cholula.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.
The financial terms of the acquisition were not disclosed. The transaction was a collaboration between L Catterton’s Flagship Buyout Fund and L Catterton Latin America.
“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.”