US-based Tropical Cheese Industries has secured a “significant” joint investment from AUA Private Equity Partners and Avance Investment Management.
While the financial terms remain undisclosed, the Mendez family founders of Tropical Cheese and the management team will retain a minority interest in the company.
Tropical Cheese founder Rafael Mendez said the company was “looking for a partner” to support “future growth” and to “preserve our strong brand and family legacy”.
In September, a report emerged that Tropical Cheese, a US-based producer of Hispanic dairy products, was exploring a potential sale of the company.
According to Reuters, which at the time cited unnamed sources, Tropical Cheese partnered with investment bank Rothschild & Co. to seek acquisition offers, with the company potentially being valued at $500m.
Tropical Cheese, founded in 1982, has grown from a small milk delivery route in Perth Amboy, New Jersey, to a portfolio of Latin American and Caribbean-style cheese, meat and seafood, tortillas, and creams.
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By GlobalDataThe company distributes across most US states, the Caribbean, Central and South America, and Europe, through convenience stores and retailers.
As per Reuters’ earlier report, Tropical Cheese is expected to generate nearly $50m in EBITDA in 2024.
Mendez added: “AUA and Avance both bring significant investing experience in food companies, family businesses and the Hispanic market, and we look forward to benefitting from their expertise in our next chapter of growth.”
AUA and Avance specialise in collaborating with family-owned and founder-led businesses.
AUA managing partner Andy Unanue said: “Leveraging our deep network in the food industry and the Hispanic community, we will focus on driving product penetration, expanding distribution points with additional centres and building lasting customer relationships.”
Avance managing partner Luis Zaldivar added that the investment is a “natural fit” as Tropical Cheese “continues to expand nationally, including the pursuit of complementary M&A opportunities”.
