Avance Investment Management and AUA Private Equity Partners have acquired Tropical Cheese Industries, a family-owned producer of Hispanic dairy and meat products.
Tropical Cheese’s product portfolio includes cheeses such as Queso de Freír and Queso Blanco, meats like chorizo, salami, and ham, as well as tortillas, yogurt drinks, seafood, creams, and desserts such as flan and rice pudding. Customers of the company are primarily Hispanic households in the United States, the Caribbean, Central and South America, and Europe.
Queso de Freír (translated as “frying cheese”) is a type of white, semi-hard cheese popular in many Latin American and Caribbean cuisines, particularly in countries like the Dominican Republic, Puerto Rico, and Cuba. Queso Blanco (translated as “white cheese”) is a fresh, soft cheese common in Latin American, Caribbean, and Mexican cuisines. It is made from cow’s milk, sometimes mixed with goat’s milk, and is known for its mild, creamy flavor and versatility in cooking.
Tropical Cheese, with 375 employees, was founded in 1982 by Rafael Mendez, a Cuban immigrant who arrived in the United States at age 17 and is headquartered in Perth Amboy, New Jersey, with two additional facilities in Florida and one in Massachusetts.
The founding Mendez family and the members of the company’s senior management team will have a minority stake in the business in partnership with Avance and AUA.
“My family and I were looking for a partner that could not only support Tropical Cheese’s future growth but, importantly, preserve our strong brand and family legacy,” said Mr. Mendez. “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.”
“The Mendez family founded Tropical Cheese over 42 years ago, and we are honored to be trusted to build on their legacy,” said Andy Unanue, the managing partner of AUA. “The company has a proven track record of sustainable growth by increasing same-store sales and the number of doors it serves, and we look forward to helping the Company expand its footprint and continue to execute on its success.”
AUA Private Equity makes equity investments from $40 million to $100 million in companies with at least $10 million of EBITDA. Sectors of interest include consumer products and services focusing on family-owned and Hispanic-oriented businesses. AUA is known for using low leverage to acquire companies and focusing on operational improvements rather than financial engineering to create stakeholder value. AUA was founded in 2011 and is headquartered in West Palm Beach, Florida.
“The investment in Tropical Cheese is a natural fit for us and came together as a result of our long-standing relationships with the Mendez family and AUA,” said Luis Zaldivar, the managing partner of Avance. “Our cultural ties are further solidified by our deep experience with Hispanic foods and family businesses. We understand and appreciate the value of the Tropical Cheese brand and the significant growth potential within its categories.”
Avance Investment Management invests in founder-owned, middle-market businesses with $25 million to $250 million in revenue and EBITDA of $10 million to $75 million. Sectors of interest include business and technology services, infrastructure and commercial services, consumer products and services, and financial and insurance services.
In September 2022, Avance held an above-target and final close of its inaugural fund, Avance Investment Partners LP, with total capital commitments of approximately $1.1 billion. Avance was founded in 2020 and is headquartered in New York City with an additional office in Miami.
© 2024 Private Equity Professional | December 17, 2024
