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Cascadia Capital has announced that it acted as the exclusive financial advisor to Pancho’s Mexican Foods, Inc. (“Pancho’s”), the manufacturer of America’s favorite queso dip since 1956, in its acquisition by Sabrosura Foods, LLC (“Sabrosura Foods”), a leading marketer and distributor of branded Hispanic food products and portfolio company of Centre Partners.
Pancho’s will join the Sabrosura Foods family of well-known brands, which include: El Viajero, La Morenita, Bio Salud! and Reynaldo’s. Sabrosura Foods is a natural partner for Pancho’s to continue its rapid expansion nationwide across the mass, club, and grocery channels.
Founded in 1956, Pancho’s gained its popularity as a local Memphis favorite before evolving as a leading brand in the refrigerated queso dip category, now found at more than 1,200 stores nationwide. Pancho’s maintains a highly loyal consumer following because of its great tasting, high quality product and exclusive use of fresh ingredients, with no artificial fillers and flavors.
“We couldn’t be more excited to join the Sabrosura Foods family,” said Brenda O’Brien, President of Pancho’s Mexican Foods, Inc. “Pancho’s has been in my family for 65 years, and we have been so grateful to bring people together over delicious food. Now, we are looking forward to our next chapter as part of the Sabrosura Foods team.”
The acquisition adds an historic, 60-year-old consumer-loved brand to Sabrosura Foods’ portfolio of Hispanic brands and further enhances the company’s position in the fast-growing queso dip category.
“Sabrosura Foods is thrilled to acquire Pancho’s, further building our portfolio of Hispanic cheese products available in stores nationwide. A key pillar of Sabrosura Foods’ growth strategy has always been focused on acquiring complementary product capabilities,” said Jeff Caswell, CEO of Sabrosura Foods. “We are proud to be able to continue Pancho’s legacy and are eager to introduce Pancho’s queso dip to even more consumers across the fast-growing snacking category.”
“Pancho’s queso dip sets itself apart with a cleaner ingredient panel and robust flavors, validated by best-in-category sales per point of distribution” said Erik Einwalter, Managing Director at Cascadia Capital “It made it a highly attractive acquisition candidate for Sabrosura, who can support a broader sales and marketing effort to further accelerate growth of the brand.”
The acquisition represents another successful transaction for Cascadia in the branded food sector and the second Hispanic food deal this year. Past transactions include the, the sale of Follow Your Heart to Danone and the recapitalization of La Tortilla Factor by Flagship Food Group, as well as the acquisition of Plum Organics by Sun-Maid.
For more information about this transaction, please contact:
Erik Einwalter
Managing Director
eeinwalter@cascadiacapital.com
(206) 436-2538
Or other senior members of the Cascadia Food, Beverage & Agribusiness team:
Michael Butler
Chairman & CEO
mbutler@cascadiacapital.com
(206) 436-2530
Bryan Jaffe
Managing Director
bjaffe@cascadiacapital.com
(206) 436-2534
Scott Porter
Managing Director
sporter@cascadiacapital.com
(206) 436-2528
George Sent
Managing Director
gsent@cascadiacapital.com
(206) 436-2511