NEW YORK, April 25 (Reuters) - The private equity owner

of Sauer Brands is exploring a sale of the 137-year-old maker of

condiments and spices that could value it at more than $1

billion, including debt, according to people familiar with the

matter.

Richmond, Virginia-based Sauer, which was founded in 1887

and is known for its Duke's Mayonnaise brand, is working with

investment banks Morgan Stanley ( MS ) and William Blair to gauge

interest from potential buyers, the sources said, requesting

anonymity as the discussions are confidential.

Charlotte-based private equity firm Falfurrias Capital

Partners is expecting to command a valuation for Sauer

equivalent to more than 10 times the company's 12-month earnings

before interest, taxes, depreciation and amortization (EBITDA)

of over $120 million, the sources said.

In 2019, Falfurrias acquired the company - which at the time

was known as The C.F. Sauer Company and was owned by the

founding family - in a deal that people familiar with the matter

said was worth $300 million.

Morgan Stanley ( MS ) declined to comment. Sauer, Falfurrias

and William Blair did not immediately respond to requests for

comment.

Sauer's other popular brands include Southern Sauces, Kernel

Season's Popcorn Flavorings, The Spice Hunter, Sauer's and Tasty

Shakes. In 2021, it acquired Mateo's Gourmet Salsa.

The food and beverage industry has been a bright spot for

dealmaking over the past year. Butterfly Equity is exploring a

sale of its avocado-based food products company Chosen Foods,

Reuters reported in March. Last year, Campbell Soup ( CPB )

acquired Sovos Brands, owner of the Rao's pasta sauce brand, for

$2.7 billion.

Falfurrias was launched in 2006 by former Bank of America

executives Marc Oken and Hugh McColl, and Ed McMahan, who had

worked at another investment firm Chicago Growth Partners

previously.

Falfurrias focuses on middle-market deals in industries

spanning software to manufacturing and has invested in companies

including restaurant operator Bojangles, analytics software firm

Marquis, and pastry manufacturer Carolina Foods.