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Highlander Partners Acquires Tapatio With Founding Family Retaining Minority Stake

The new ownership signals growth through broader distribution alongside new product development, with an emphasis on brand preservation.

Overview

  • The Arnold Companies takes a significant minority position as part of the transaction, joining Highlander as an equity partner.
  • Financial terms were not disclosed, while J.P. Morgan led senior financing and NMP Capital provided financing and equity.
  • Stout served as exclusive financial advisor to Tapatio, and Katten advised Highlander on legal matters.
  • Highlander outlines plans to expand Tapatio’s geographic reach, deepen penetration in retail and foodservice channels, and enter complementary categories.
  • Founded in California in 1971 by Jose-Luis Saavedra Sr., Tapatio is billed as the No. 5 U.S. hot-sauce brand with strong Western U.S. presence and long-running snack collaborations with Frito-Lay.