Teasdale represents the third sale of a portfolio company by Palladium this year. Earlier this year, Palladium sold its portfolio companies ABRA Auto Body & Glass – a national provider of vehicle damage repair services – to Hellman & Friedman, and Sahale Snacks – a manufacturer and marketer of premium, branded nut and fruit snacks – to The J. M. Smucker Company.
Teasdale Quality Foods is the largest producer and marketer of canned hominy and beans in the Western United States, primarily serving the Hispanic market under its Teasdale brand and other branded products such as Aunt Penny’s and Emilio’s. The company sells its products through the retail, foodservice, government and industrial channels, including grocery chains, distributors, club stores, dollar stores, restaurant chains, commissaries, Hispanic food manufacturers and the U.S government. Teasdale owns and operates manufacturing facilities in Atwater, CA (headquarters), Hoopeston, IL and Greeley, CO. The company was founded in 1930 (www.teasdale.net).
Palladium acquired Teasdale in September 2011. During the course of ownership, the company completed three add-on acquisitions (Zateca Foods, Greeley Trading Company and Hoopeston Foods), deepened relationships with existing customers, and began to service new customers in a variety of channels, including retail, foodservice, government, and industrial.
“We are very pleased with the outcome we have achieved for Teasdale,” said Luis Zaldivar, a Managing Director of Palladium. “Backed by an excellent management team, Teasdale over the course of our investment integrated three regional businesses, focused on the attractive store brand and organic categories, and became a national Hispanic food platform with significant growth momentum.”
Alberto Bandera, CEO of Teasdale, added, “We are extremely thankful for the support we received from our partners at Palladium over the last three years. They helped us execute on an ambitious growth plan by providing sound advice and access to the human and capital resources we needed.”
Palladium Equity Partners targets investments in business services companies as well as in financial services, consumer/retail, food/restaurants, healthcare, industrial, and media businesses. Palladium has a focus on companies that operate in the US Hispanic market. In April 2014, Palladium announced the final closing of Palladium Equity Partners IV, LP with $1.1 billion of capital, significantly above the firm’s target. Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions. The firm is based in New York (www.palladiumequity.com).
Snow Phipps, the buyer of Teasdale Foods, makes control investments in companies primarily located in North America with enterprise values ranging from $100 million to $500 million that require equity investments ranging between $40 million and $100 million. The firm has $1.5 billion of assets under management and was co-founded by Ian Snow and Ogden Phipps in April 2005. Snow Phipps is headquartered in New York (www.snowphipps.com).
2014 PEPD • Private Equity’s Leading News Magazine • 10-29-14