Tropical Cheese Industries, a US-based company, has secured a substantial joint investment from AUA Private Equity Partners and Avance Investment Management.
While the financial details remain undisclosed, it’s noteworthy that the Mendez family, who founded Tropical Cheese, along with the management team, will retain a minority interest in the enterprise.
Rafael Mendez, the founder of Tropical Cheese, expressed that the company was “looking for a partner” to facilitate “future growth” and to “preserve our strong brand and family legacy.”
In September, reports surfaced indicating that Tropical Cheese, a prominent producer of Hispanic dairy products, was considering a potential sale of the company.
According to Reuters, which cited unnamed sources, Tropical Cheese enlisted the expertise of investment bank Rothschild & Co. to explore acquisition offers, with a valuation potentially reaching $500 million.
Founded in 1982, Tropical Cheese has transformed from a modest milk delivery route in Perth Amboy, New Jersey, into a leading provider of Latin American and Caribbean-style cheese, meat and seafood, tortillas, and creams.
Tropical Cheese distributes its products across most US states, as well as in the Caribbean, Central and South America, and Europe, primarily through convenience stores and retailers.
As reported by Reuters, Tropical Cheese anticipates generating nearly $50 million in EBITDA for 2024.
Mendez highlighted that “AUA and Avance both bring significant investing experience in food companies, family businesses, and the Hispanic market. We look forward to benefiting from their expertise as we embark on our next chapter of growth.”
Both AUA and Avance specialize in collaborating with family-owned and founder-led businesses.
AUA managing partner Andy Unanue stated, “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 noted that this investment represents a “natural fit” for Tropical Cheese as it “continues to expand nationally, including the pursuit of complementary M&A opportunities.”
