Holy Cholula! Acquired for $800 Million or Near 10 Times Sales!

McCormick to buy hot-sauce maker Cholula for $800 million (CNBC).

  • McCormick said it would buy hot-sauce maker Cholula’s parent from private-equity firm L Catterton for $800 million.
  • The spice maker is looking to cash in on robust demand for packaged foods during the Covid-19 pandemic.
  • McCormick reported an 8% jump in sales in its latest reporting quarter, as higher at-home food consumption outweighed weak sales to its restaurant partners.
  • Cholula’s annual net sales are about $96 million.