Palladium Equity Partners, a private equity firm based in New York, has sold Castro Cheese to Dairy Farmers of America.
Terms were not disclosed.
Castro Cheese is a manufacturer, marketer and distributor of queso fresco and other varieties of Hispanic cheeses and creams. The company’s products are marketed under the brand "La Vaquita" in Texas and other southwestern states.
"We are thrilled with the successful outcome of the Castro Cheese transaction," says Luis Zaldivar, managing director of Palladium. "Since the acquisition in August 2007, Castro Cheese has successfully targeted major retailers such as H.E.B., Wal-Mart, Fiesta Mart, Kroger and Costco, where they have launched several new Hispanic cheese products under the brand ‘La Vaquita’ and pursued geographic expansion beyond Texas. We are proud to have partnered with management on what has been an outstanding investment, and we are confident that DFA is well positioned to support the company’s continued growth."
"Palladium’s distinctive focus on companies that serve the Hispanic market and strong track record in investing in food businesses made them an extremely valuable partner for us," says Alberto Bandera, operating executive of Castro Cheese. "Palladium has helped us grow and develop our family business into a professionally-managed enterprise, while preserving the spirit, heritage and focus on high quality products that make us successful."
Lincoln International acted as financial adviser to Palladium and Castro Cheese in connection with the sale.
