Wind Point Partners and portfolio company Tropicale Foods, a manufacturer of authentic Hispanic-inspired frozen novelty products under the Helados Mexico brand, announced the acquisition of Paleteria La Michoacana (“PLM”), a portfolio company of Canum Capital Partners and Greyrock Capital Group. PLM is a manufacturer of frozen novelty products under the La Michoacana brand, producing an assortment of traditional Hispanic offerings including paletas, bolis, and mangonada cups which are sold nationwide at multi-outlet retailers, convenience stores, and traditional grocery outlets.
As legend has it, the first “Paleteria” appeared in the 1940s in a town called Tocumbo, a fertile sugarcane state in Michoacán, 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 logo image of the young girl 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 (“SQF”) certified facility in Modesto, Calif.
PLM and Tropicale share several similarities spanning their entrepreneurial success stories, tremendous growth, and high-quality, authentic products. The combination 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, as well as continue operations via existing facilities in Ontario and Modesto, California. The combination will enable additional investments in marketing, new products, and new formulations that will help accelerate category growth. While relatively small compared to the broader US frozen novelty market, the US market for Hispanic frozen novelty products is faster-growing and boasts among the most loyal of consumer bases. Tropicale and PLM will continue to lead market growth by taking great pride in providing customers with the highest-quality, most authentic, and great tasting products.
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. Tropicale will continue to seek strategic acquisition opportunities, with a focus on leading branded frozen novelty businesses.
Winston & Strawn served as legal counsel to Tropicale. Piper Sandler served as financial advisor and Mayer Brown served as legal counsel to PLM.