Highlander Partners, L.P. has acquired the Tapatío hot sauce brand 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 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 connection to traditional Mexican flavors. Known for its balance of medium heat and rich, tangy flavor, Tapatío is crafted from a blend of red peppers and spices.

Tapatío has built a trusted brand within the growing hot sauce category. Tapatío's products have developed a 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, Tapatío 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,” says Jeff L. Hull, president and CEO of Highlander Partners. “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.”

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,” says former Tapatío CEO Luis Saavedra Jr. “Tapatío has a strong business with a proud heritage and identity. Highlander shares our vision to maintain this legacy."