Stout has advised Tapatio (“Tapatio” or the “Company”) on its sale to Highlander Partners, L.P. (“Highlander”). Stout served as exclusive financial advisor to Tapatio in connection with the transaction, which closed in January 2026.

Tapatío® is a beloved hot sauce brand that 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 deep connection to traditional Mexican flavors. Known for its perfect balance of medium heat and rich, tangy flavor, Tapatío® is crafted from a blend of red peppers and spices. It is a versatile condiment, commonly used to enhance everything from Mexican cuisine to eggs, soups, and more.

Tapatio has built a trusted, authentic brand within the growing hot sauce category. Tapatio’s products have developed a large, 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, the Company plans to extend its reach into nascent geographies, broaden its distribution channels, bolster new product development, and enter complementary new product categories.