11:41 ET Highlander Partners Acquires Iconic Hot Sauce Brand, Tapatio

, /PRNewswire/ -- Highlander Partners, L.P. ("Highlander"), a Dallas-based private investment firm, today announced the acquisition of Tapatio ("Tapatio" or the "Company"), the #5 hot sauce brand in the U.S. with authenticity that resonates across mainstream and Hispanic consumers, from the Saavedra family. The Arnold Companies also invested a significant minority equity position along with Highlander, and the Saavedra family will retain a minority position in Tapatio post-closing. Tapatío® is a beloved hot sauce brand that has been bringing a flavorful kick to dishes since 1971. Founded in California by Jose-Luis Saavedra Sr., Tapatío® is named after the term used to describe someone from Guadalajara, Mexico, reflecting its deep connection to traditional Mexican flavors. Known for its perfect balance of medium heat and rich, tangy flavor, Tapatío® is crafted from a blend of red peppers and spices. It's a versatile condiment, commonly used to enhance everything from Mexican cuisine to eggs, soups, and more. Tapatio has built a trusted, authentic brand within the growing hot sauce category. Tapatio's products have developed a large, loyal following in the Western U.S., where its customers include big-box retailers, supermarkets, restaurant chains, and other retail outlets. With Highlander's investment and partnership, the Company plans to extend its reach into nascent geographies, broaden its distribution channels, bolster new product development and enter complementary new product categories. "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 L. Hull, President and CEO of Highlander Partners."It is both a privilege and an immense responsibility for Highlander to be the next steward of the Tapatio brand," said Jeff Partridge, Partner at Highlander. "We share the Saavedra family's vision to maintain the brand's legacy as we carefully and purposefully target opportunities to grow the brand geographically, introduce new flavors and products, and deepen penetration in both the retail and foodservice channels."Luis Saavedra Jr., former CEO for Tapatio stated, "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. Tapatio has a strong business with a proud heritage and identity. Highlander shares our vision to maintain this legacy."Stout served as exclusive financial advisor to Tapatio on the transaction. 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.About Highlander PartnersHighlander Partners, L.P. is a Dallas-based private investment firm with more than $3 billion in assets under management. The firm focuses on making investments in businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Highlander Partners employs a buy and build investment approach, creating value by helping companies grow both organically and through acquisitions. For more information, visit www.highlander-partners.com.About TapatioTapatío® is a beloved hot sauce brand that has been bringing a flavorful kick to dishes since 1971. Founded in California by Jose-Luis Saavedra Sr., Tapatío® is named after the term used to describe someone from Guadalajara, Mexico, reflecting its deep connection to traditional Mexican flavors. Known for its perfect balance of medium heat and rich, tangy flavor, Tapatío® is crafted from a blend of red peppers, vinegar, garlic, and spices. It's a versatile condiment, commonly used to enhance everything from Mexican cuisine to eggs, soups, and more.. For more information, visit www.tapatiohotsauce.com.SOURCE Highlander Partners, L.P.