McCormick Acquires Cholula Sauce Brand for $800 Million

Hot sauce is an attractive and high-growth category for McCormick, which will be able to expand its offering in the market.
McCormick Acquires Cholula Sauce Brand for $800 Million
Image credit:

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Entrepreneur Staff
1 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

McCormick has entered into a definitive agreement to acquire 100% of the Cholula sauce company for $ 800 million without cash or debt, the company said in a statement.

The transaction is expected to be completed by the end of the year and will be financed with a combination of available cash and commercial paper. At closing, the company will incur certain transaction costs that will affect earnings per share.

"The Cholula acquisition accelerates McCormick's growth opportunities within our condiments platform and expands our portfolio in the hot sauce category with the addition of the Cholula brand," added Lawrence E. Kurzius, president and CEO, in the document. by McCormick.

Hot sauce is an attractive, high-growth category and Cholula is outpacing the growth of the category. Cholula's annual net sales are approximately $ 96 million and are expected to grow in the mid to high single digits in a normalized environment beyond the COVID-19 pandemic.

Cholula's portfolio of six distinctive flavors is made in Mexico with high-quality ingredients and is based on a 100-year-old recipe comprised of a unique blend of fresh peppers and regional spices.

McCormick plans to retain the Cholula brand in the retail and foodservice channels.

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Make sure you’re covered if an employee gets injured at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur