La Tortilla Factory announced that Flagship Food Group has agreed to make an investment into the company to support its future growth strategy. Flagship will become the majority stake holder in the company while the third generation Tamayo family members continue to remain valued partners.
"We are excited and eager to embrace Flagship Food Group and its entire family of companies and brands as supporters of La Tortilla Factory's strategic growth plan," said Jeff Ahlers, CEO. "Their investment acumen and broader experience in the food industry will support and accelerate our strategy, especially given their success and enthusiasm within the Mexican food category."
Majority owned by CREO Capital Partners, Flagship is a diversified food company that sells a wide range of food products and services under the 505 Southwestern, Lilly B's, TJ Farm's and other brands. Most of Flagship's brands are rapidly expanding, having experienced double-digit growth in recent years.
"As we embark on our 43rd year in business, we are excited to have Flagship Food Group as partners. It was very important to our family that a new partner shared our core values and were genuinely interested in our people, our brand, and our culture," said Sam Tamayo, third generation family member and Chairman of the Board. "We feel fortunate to have found a match with Flagship and CREO."
The Tamayo family started La Tortilla Factory in 1977 to serve local Northern California restaurants and retailers. Today, the Company is the largest nationally-distributed tortilla brand whose product portfolio is focused on true better-for-you, organic, and low carb categories.
"As Flagship has continued to focus on premium-oriented food brands, and in particular in the Hispanic foods sector, it became clear to us that La Tortilla Factory was a perfect addition to our platform. Being one of the leading brands in the better-for-you segment of the tortilla and Mexican food space, LTF further enhances our ability to execute on our growth strategy," said Rob Holland, the Founding Partner at CREO Capital Partners.
Patrick Moulder, a partner at CREO added, "We've gotten to know Jeff, Sam, and the broader LTF family of executives and ownership over the past year and half, and our passion for helping them to build their business is very high."
The new partnership will build on the outstanding reputation that La Tortilla Factory has cultivated within the food industry and community since 1977. Its 300 employees will remain in place and focused on the company's vision to be the innovative brand leader in premium Mexican food.
The transaction closed on January 27, 2021. Terms of the transaction are confidential.
Cascadia Capital represented and advised La Tortilla Factory on this transaction.
Nixon Peabody advised Flagship Food Group.
About La Tortilla Factory
Headquartered in Santa Rosa, CA, La Tortilla Factory is one of the leading makers and distributors of premium and better-for-you tortillas and Mexican food products. Since 1977, when founders Jose and Mary Tamayo opened the doors of La Tortilla Factory, they were dedicated to creating authentic recipes with premium ingredients. Three generations later, that vision has led La Tortilla Factory to become one of the largest and fastest-growing brands in its core markets and product categories. The Company offers a wide range of corn, flour, and specialty tortillas, such as Grain-Free Cauliflower, Low Carb, and Protein along with side dishes, sauces, and snacks. La Tortilla Factory operates a state-of-the-art manufacturing facility in Northern California and operates distribution facilities in multiple cities on the West Coast.
About Flagship Food Group
Flagship Food Group is a diversified food company that manufactures, sells, and distributes food products under the 505 Southwestern, Lilly B's, TJ Farm's, La Tortilla Factory, and Hatch Kitchen brands. The Company also partners with leading food retailers to develop R&D-driven private label programs, and provides food logistics, warehousing, and freight management services within the food industry. The Company operates facilities and offices in Boise, ID, Denver, CO, Albuquerque, NM, Santa Rosa, CA, San Francisco, CA, Minneapolis, MN, and Indianapolis, IN.