Dallas private equity firm Highlander Partners announced Tuesday that it has acquired hot sauce brand Tapatio for an undisclosed price.
Fellow Dallas firm Arnold Companies acquired a “significant minority equity position” in the business, as well, and the Saavedra family is also retaining a minority stake. Jose-Luis Saavedra Sr. founded the company in California in 1971.
Highlander officials said that Tapatio is the no. 5-ranked hot sauce brand in the U.S. with a “large, loyal following” in the West, where it partners with leading retailers and restaurant chains. The firm said that it hopes to bolster its distribution and geographic reach, as well as expand into new product categories and enhance its product development efforts.
Highlander owns more than a dozen additional businesses, including food companies Pretzilla and Monarca.
"We are excited to partner with Tapatio, a generational business that is distinguished by a strong, authentic brand in the fast growing hot sauce category,” Highlander President and CEO Jeff Hull said in a statement. “We believe that Tapatio is poised to benefit from several secular trends that are dramatically reshaping consumer food choices.”
"Highlander is a perfect fit given their extensive background in the branded Hispanic food category, and we are pleased to have a partner that invests their own capital and takes a long-term strategic approach to growing companies,” added former Tapatio CEO Luis Saavedra Jr.
