Arbor Investments has completed the sale of Truco Enterprises to Insignia Capital Group. Arbor acquired a controlling interest in Truco in 2004.
Truco Enterprises markets and distributes branded Mexican food and beverage products. The company’s primary product lines include tortilla chips, salsa, queso and bean dips, frozen fajita kits, soups and non-alcoholic drink mixes sold under the On the Border® and Cactus Creek® brands. The company’s products are sold nationally through grocery retailers, club stores, mass merchandisers and specialty retailers. The company was founded in 1991 by David Silver and Roy Truitt and is headquartered in Dallas (www. trucoenterprises.com).
During Arbor’s ownership, Truco quadrupled in size and grew to become one of the fastest growing snack food companies in the country.
“Our partnership with Truco has been rewarding and extraordinarily successful,” said Joseph Campolo, Arbor’s President and Co-Founder. “With this sale, we will realize a 6.7x return on our investment.”
Truco was the last Fund I portfolio company of Arbor and brings about the conclusion of Arbor Fund I which was raised in 1999. Arbor Fund I has generated a 4.1x return multiple of capital invested, net of carried interest, management fees and expenses.
“We are thrilled with the performance of Arbor Fund I and the returns we have been able to generate for our investors,” said Mr. Campolo.
Arbor invests in the food, beverage and related industries. The firm has acquired or invested in over 30 food and beverage companies in North America and currently has $600 million of assets under management across three funds. Arbor was founded in 1999 and is based in Chicago (www.arborpic.com).
The buyer of Truco, Insignia Capital Group, invests in lower middle-market companies with revenues of at least $20 million. The firm will consider investments in an array of industries but has a specific interest in consumer, business services and healthcare. Insignia Capital Group is based near San Francisco in Walnut Creek, CA (www.insigniacap.com).
“We are extremely pleased to partner with Truco’s outstanding management team, led by President and CEO Jeff Partridge. The team has driven tremendous and consistent growth over the past decade and has done a terrific job of expanding the company’s distribution footprint and introducing new products,” said David Lowe, CEO of Insignia. “The acquisition fits squarely within our investment focus, and we look forward to supporting management to generate a successful outcome for all stakeholders.”
2014 PEPD • Private Equity’s Leading News Magazine • 7-8-14
