L Catterton Completes Sale of Cholula to McCormick

Rhea-AI Summary

L Catterton has finalized the sale of Cholula, a prominent hot sauce producer, to McCormick & Company (NYSE: MKC) for $800 million. This transaction marks the conclusion of their partnership with Cholula, which has been positioned well for growth under McCormick's management. Morgan Stanley acted as the lead financial advisor for Cholula, with support from Houlihan Lokey and Kirkland & Ellis as legal advisors for L Catterton. Cholula, known for its unique blend of spices and peppers, has a rich history since its U.S. introduction in 1989, now offering six sauce varieties worldwide.

Positive

• McCormick's acquisition of Cholula for $800 million strengthens its product portfolio.
• Cholula's established brand and global reach could enhance McCormick's market position.

Negative

• None.

GREENWICH, Conn., Nov. 30, 2020 /PRNewswire/ -- L Catterton, the largest and most global consumer-focused private equity firm in the world, today announced that it has completed the previously-announced sale of Cholula, a leading producer and distributor of hot sauce, to McCormick & Company, Incorporated (NYSE: MKC) for $800 million.

"We are pleased to conclude our successful partnership with Cholula," said Matt Leeds, Partner at L Catterton. "It was a privilege to invest behind this iconic brand, and we are confident that Cholula will continue to grow and thrive under McCormick's ownership."

Morgan Stanley & Co. LLC acted as lead financial advisor to Cholula; Houlihan Lokey, Inc. acted as financial advisor to Cholula; and Kirkland & Ellis LLP acted as legal advisor to L Catterton and Cholula.

About Cholula

Cholula's delicious hot sauce is created from a generations-old recipe featuring carefully selected arbol and piquin peppers and a secret blend of signature spices. Its unique recipe delivers a robust flavor with just the right amount of heat, with versatility far beyond the everyday condiment. Cholula's distinctive wooden cap and artistic yellow label are testaments to the quality tradition of Mexican artisanship, and each bottle of Cholula is crafted with care in Jalisco, Mexico. Introduced into the U.S. in 1989, Cholula's hot sauce now comes in six varieties and is enjoyed around the world.

About L Catterton

With approximately $20 billion of equity capital across seven fund strategies in 17 offices globally, L Catterton is the largest and most global consumer-focused private equity firm in the world. L Catterton's team of nearly 200 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. For more information about L Catterton, please visit www.lcatterton.com.

Contacts

Andi Rose / Julie Oakes
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

View original content:http://www.prnewswire.com/news-releases/l-catterton-completes-sale-of-cholula-to-mccormick-301181896.html

SOURCE L Catterton

FAQ

What was the sale price of Cholula to McCormick?

Cholula was sold to McCormick & Company for $800 million.

When was the sale of Cholula completed?

The sale of Cholula was completed on November 30, 2020.

How will McCormick benefit from acquiring Cholula?

The acquisition is likely to enhance McCormick's product portfolio and market presence.

What is the ticker symbol for McCormick?

The ticker symbol for McCormick & Company is MKC.