Sauer Brands offloads spice business to Watkins

Sauer Brands has agreed to sell its spice and seasonings division to Watkins, a US-based manufacturer, according to the latest reports. The exact financial terms of the deal have not been disclosed. As part of the agreement, Watkins will gain the branding and distribution rights to Sauer's Kernel Season, Spice Hunter, and Sauer brands for spices and seasonings. The transaction also encompasses Sauer's private label and foodservice operations within the spice sector.

Furthermore, Watkins will take over Sauer Brands' production facilities located in Richmond, Virginia, and San Luis Obispo, California. Sauer Brands, the parent company of Duke's Mayo, has stated that this move aligns with their strategy to concentrate on their condiments business. This includes their main brands Duke's Mayonnaise and Mateo's Gourmet Salsa, as well as a prominent foodservice division.

E. Yuri Hermida, who assumed the CEO role at Sauer Brands in March of the previous year, commented on the significance of this transaction in shaping their future direction. The deal is expected to be finalized in the third quarter, subject to the fulfillment of standard closing conditions.

J.R. Rigley, Watkins' CEO, expressed optimism about integrating the acquired assets into their existing operations. He highlighted the potential benefits of leveraging Watkins' expertise and established reputation to broaden their presence in branded, foodservice, and private label segments. Sauer Brands operates manufacturing plants in Mauldin, South Carolina; New Century, Kansas; and San Luis Obispo, California.

The company was originally acquired in 2019 by Falfurrias, an investment firm based in Charlotte, North Carolina. In February of the previous year, private-equity firm Advent International purchased Sauer Brands from Falfurrias.