McCormick nears deal to buy hot-sauce maker Cholula: WSJ

Deal in works for spice maker to purchase condiment for around $800M

McCormick & Co. is nearing a deal to buy hot-sauce maker Cholula, according to people familiar with the matter, seeking to capitalize on demand for spicy condiments.

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The seasonings company is discussing a deal with L Catterton, the private-equity firm that has owned Cholula since 2019, that would value it at around $800 million, the people said.

A deal, resulting from an auction of the business, could come together as soon as Tuesday, assuming the talks don’t fall apart.

Mexico, Mexico City, Ciudad de MŽxico, Federal District, Benito Juarez International Airport, gate area, gift shop selling local specialty products. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)

McCormick, famous for its red-capped bottled spices and rectangular tins, owns brands including French’s yellow mustard, Old Bay seasoning and Thai Kitchen products.

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It already owns another popular hot sauce, Frank’s RedHot, best known for its buffalo-wing sauce, which it acquired in 2017.

McCormick, which is based in Hunt Valley, Md., and has a market value of around $24 billion, sells both to consumers and restaurants.

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