Spice and seasoning manufacturer McCormick has signed a definitive agreement to acquire the parent company of Cholula Hot Sauce brand from L Catterton for an $800m consideration.

The deal is expected to further strengthen McCormick’s condiment portfolio, with the addition of a new Mexican flavour hot sauce brand.

McCormick chairman, president and CEO Lawrence E Kurzius said: “The acquisition of Cholula accelerates McCormick’s growth opportunities within our condiment platform and broadens our portfolio in the hot sauce category with the addition of the Cholula brand.

“Hot sauce is an attractive, high-growth category and, as an iconic premium brand, Cholula is outpacing category growth.

“As McCormick continues to capitalise on the growing consumer interest in healthy and flavourful eating, Cholula, a brand known for authentic bold and spicy Mexican flavours, is a strong complement to our portfolio providing consumers and foodservice operators with an even more diverse product offering that we expect will strengthen our growth opportunities.”

Cholula’s sauces are available in six different flavours and claimed to be produced using ‘high-quality’ ingredients in Mexico.

McCormick will fund the acquisition with cash on hand and commercial paper.

Completion of the deal is subject to the customary closing conditions and expected to take place at the end of this year.

Upon completion of the deal, McCormick plans to retain the Cholula brand name.

McCormick also intends to further expand Cholula’s brand presence and expand its distribution footprint.

Cholula CEO Maura Mottolese said: “In the last 19 months, with the support, resources, and operational expertise of the L Catterton team, we established Cholula as a high-performing standalone business, vastly improved our commercial execution efforts, and pivoted our foodservice strategy to position Cholula for long-term growth and success.

“With McCormick’s extensive experience and unique insight into the hot sauce category and unmatched global flavour leadership, we look forward to capitalising on new opportunities and reaching even greater heights together.”