MegaMex Foods LLC, a joint venture between Hormel Foods Corporation andHerdez Del Fuerte, S.A. de C.V ., said it agreed to purchase refrigerated and frozen Mexican foods processor Don Miguel Foods Corp. fromTSG4 L.P., a private equity fund sponsored by TSG Consumer Partners LLC, and private investors.
Officials said they expect to complete the deal in October 2010. Terms were not disclosed.
Previously, MegaMex, Chino, Calif., has marketed and distributed shelf-stable salsas, sauces, peppers and tortillas.
Don Miguel Foods, Anaheim, Calif., processes refrigerated and frozen Mexican appetizers, snacks and handheld items. Its product portfolio includes mini tacos, flautas, taquitos, empanadas, burritos and roller grill items. The company has a processing plant and distribution center in the Dallas area, officials noted.
“Growth through the strategic acquisition of Don Miguel Foods is an important step toward making us stronger for the future,” said Enrique Hernández-Pons Torres, MegaMex Foods chairman. “Adding these leading product categories to our portfolio brings us closer to achieving our goal of being a one-stop-shop for Mexican foods for our customers.”
Added Luis G. Marconi, one of MegaMex Foods' managing directors, “Don Miguel Foods will add new competencies that will allow us to continue expanding our presence in the nation’s leading convenience stores, club stores and supermarkets."
Hormel Foods Corporation, Austin, Minn., is a multinational manufacturer and marketer of consumer-branded food and meat products. Herdez Del Fuerte, based in Mexico City, is a leading manufacturer and marketer of consumer-branded food and beverages in Mexico and the United States. The company has a strong product portfolio mainly based in tomato, fruit, vegetable, jalapeño, mole sauce, coffee and tuna products.
Hormel venture buys Don Miguel
September 7, 2010