Tropicale Foods acquires Paleteria La Michoacana

Tropicale Foods has announced its acquisition of Paleteria La Michoacana (PLM), a portfolio company of Canum Capital Partners and Greyrock Capital Group.

PLM offers a range of Hispanic-inspired frozen novelty products under the La Michoacana brand. The company, which operates a 45,000-square-foot facility in Modesto, California, produces traditional Hispanic offerings such as paletas, bolis, and mangonada cups.

Tropicale, a portfolio company of Wind Point Partners, also manufactures Hispanic-inspired frozen novelty products.

Following the acquisition, Tropicale will continue to offer its Helados Mexico brand, alongside the La Michoacana-branded range.

“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.”

The combination is expected to enable new product development and additional investments in marketing.

“This acquisition will enhance both companies’ ability to serve customers through continued innovation and multiple manufacturing facilities with greater capabilities,” said Joe Lawler, managing director with Wind Point Partners.

Brandon Gregorio and Robert Spigner, co-founders of Canum Capital Partners, added: “We’re proud of the industry-leading growth and operational transformation executed by PLM over the last four years.

“This combination of strong, recognised 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.”

The financial terms of the transaction have not been disclosed.