Vernon-based Tapatio Foods is now a Highlander Partners company.

The Dallas-based private investment firm announced on Jan. 20 that the hot sauce brand is joining its portfolio as its newest acquisition among the ranks of Pretzilla and Monarca Food Solutions. Another Dallas investment firm, The Arnold Cos., made a significant minority equity investment, with the founding Saavedra family retaining a minority stake in Tapatio following the close of the deal.

“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,” said Jeff L. Hull, chief executive of Highlander, in a statement.  “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.”

Former Tapatio Chief Executive Luis Saavedra Jr. said the company was pleased to partner up with Highlander considering its shared vision and extensive background in Hispanic food.

A hot commodity

Founded in Maywood in 1971 by Jose-Luis Saavedra Sr. before moving to Vernon, Tapatio was the most purchased hot sauce brand in California on Instacart in 2025. It is likely to stay a top performer, according to experts.

“What stands out in the data is its consistency: Consumers return to it again and again, suggesting that hot sauce choices are sometimes less about chasing novelty or extreme heat and more about reaching for a familiar, reliable option that fits easily into everyday cooking,” Instacart data analyst Alex Orellana told Food & Wine.

NMP Capital supported the transaction with financing and equity, while JPMorgan Chase & Co. led senior financing facilities. Stout Risius Ross and Katten Muchin Rosenman served as advisers.

Highlander Partners declined requests from the Business Journal for an interview, and it didn’t specify the transaction amount or the expected closing date.