Wind Point Partners and group company Tropicale Foods announced the acquisition of Paleteria La Michoacana (PLM), a Canum Capital Partners and Greyrock Capital Group portfolio company.
PLM is a leading manufacturer of frozen novelty products under the La Michoacana brand. Produce an assortment of traditional Hispanic offerings, including paletas, bolis, and mangonada cups sold nationwide through multi-outlet retailers, convenience stores, and conventional grocery stores.
Tropicale is a leading manufacturer of authentic Hispanic-inspired frozen products under the Helados Mexico brand. With PLM they share several similarities because of their business success stories, tremendous growth, and high-quality authentic products, the company said in a press release.
“I am thrilled to welcome the PLM team to Tropicale. The cultures of our two companies are very similar, making this a natural partnership. PLM has built a terrific business with a great brand, customer base, team, and operation,” said Steven Schiller, CEO of Tropicale. “Our plan, is to invest behind PLM and the La Michoacana brand and leverage our combined capabilities to accelerate growth for our customers, continue to delight our consumers, and create great experiences for our employees,” added Schiller.
The acquisition further enhances Tropicale’s leadership position in branded Hispanic-inspired frozen novelty products. Tropicale will continue to offer both the Helados Mexico and La Michoacana brands and continue operations via existing facilities in Ontario and Modesto, California, the company said.
Joe Lawler, Managing Director with Wind Point Partners, noted that “the combination of PLM and Tropicale is an important part of our value creation plan to grow in the Hispanic frozen novelty segment. This acquisition will enhance both companies’ ability to serve customers through continued innovation and multiple manufacturing facilities with greater capabilities.”
While relatively small compared to the broader U.S. frozen novelty market, the U.S. market for Hispanic frozen novelty products is faster-growing. It boasts among the most loyal of consumer bases.
Paleteria La Michoacana, on its website, says the first Paleteria appeared in the 1940s in a town called Tocumbo, in the sugarcane state of Michoacan, Mexico. PLM brought paletas to the United States more than 25 years ago, with the company’s humble beginnings tracing back to a single pushcart in central California.
The name La Michoacana and the young girl’s logo image from Michoacán soon became a trusted and preferred brand across the country. Today, PLM is a leading manufacturer of Hispanic-inspired frozen novelty products and operates a 45,000 square foot, Safe Quality Food certified facility in Modesto, California.
“We’re proud of the industry-leading growth and operational transformation executed by PLM over the last four years,” said Brandon Gregorio and Robert Spigner, co-founders of Canum Capital Partners. “This combination of strong, recognized brands unites two customer-driven companies with highly complementary capabilities. The financial backing of Wind Point Partners and our continued investment in the combined company will enable a value creation plan that will accelerate growth.” Wind Point is an active investor in the food industry, with select current and recent investments, including Stir Foods, Evans Food Group, and Gehl Foods. PLM represents the first acquisition for Tropicale under Wind Point’s ownership after partnering with Wind Point in December 2019.