Highlander Partners, a US-based private-investment firm, has announced the merger of its Benestar Brands with Mexico snacks peer Palmex, a manufacturer owned by Wind Point Partners. In this strategic move, Wind Point will become the majority shareholder of the combined business, while Highlander will retain a “significant minority position”.
Simultaneously, the Pretzilla division of Benestar Brands, known for its fresh pretzel bread and snack products, will be spun out as a stand-alone business entity held by Highlander and Pretzilla’s management team.
Jose Luis Prado, the current chairman and CEO of Palmex, will step into the role of chairman and CEO for the combined organization. Myers will remain as president of the Benestar division within the combined company. Prado, with over 30 years of experience leading snack businesses, is confident that the merger will accelerate growth and align resources to “innovate and capture emerging-market trends.”
The merger creates a powerhouse in the North American salty snack industry, positioning the combined entity as one of the leading providers of Hispanic and better-for-you salty snacks across the continent.
Jeff Hull, CEO of Highlander, expressed his enthusiasm for the partnership, stating that uniting the two companies “marks a significant milestone” in Benestar’s expansion plan. The company’s strategy includes expanding both organically and through multiple acquisitions.
Jeff Partridge, a partner at Highlander, believes that “combining Benestar’s renowned brand portfolio with Palmex’s state-of-the-art pellet extrusion capabilities” will support innovation and accelerate growth.
Pretzilla, a division of Benestar Brands, is known for its manufacturing facilities in Milwaukee, Wisconsin. Benestar, headquartered in Chicago, Illinois, operates as a holding company for snack brands, including Mac’s, 4505, Turkey Creek, and Pretzilla, with seven production facilities across North America.
On the other hand, Palmex, headquartered in Monterrey, Mexico, is a third-party manufacturer of better-for-you and “Hispanic” snack pellets. The business operates production facilities in Puebla and Monterrey in Mexico, and nine distribution centers, eight in Mexico, and one in Los Angeles.
This merger aims to introduce a wider range of innovative products, enhance the portfolio of offerings, and expand market reach, thereby capturing emerging-market trends in the food and beverage industry. This powerful combination promises to be a transformative step in the journey of both companies and supports Highlander’s extensive food-industry expertise to provide strategic guidance to the combined organization.
