Tapatio Enters New Era of Global Growth Under Highlander Partners

Highlander Partners LP, a Dallas-based private investment firm, has acquired Vernon-based Tapatio, one of the top hot sauce brands in the U.S., from the Saavedra family. The investment will allow Tapatio to extend its reach into developing countries, broaden its distribution channels, bolster new product development and enter complementary new product categories.

The Saavedra family will retain a minority position in Tapatio post-closing, with the Arnold Companies also investing a significant minority equity position in the brand alongside Highlander Partners.

“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. We believe that Tapatio is poised to benefit from several secular trends that are dramatically reshaping consumer food choices, and we look to take advantage of the brand’s significant whitespace opportunity,” said Jeff Hull, president and chief executive of Highlander Partners, in a statement.

Tapatio is a hot sauce brand that was founded in 1971 and has since developed a large, loyal following in the Western U.S., where its customers often include big-box retailers, supermarkets, restaurant chains and other retail outlets. It is known for its tangy flavor and medium-rich heat.

Stout served as exclusive financial advisor to Tapatio during the transaction, while J.P. Morgan led the senior financing facilities, and NMP Capital provided both financing and equity in support of the transaction. Katten served as legal advisor to Highlander.

Highlander Partners has more than $3 billion in assets under management and is focused on investing in businesses in targeted industries in which its principals have notable operating and investing experience.

Information for this article was sourced from Highlander Partners.