February 9, 2021
Cascadia is pleased to announce that our client La Tortilla Factory, Inc. (“LTF”), a third-generation family-owned maker of Mexican tortillas and sauces, has sold a majority stake in the company to Flagship Food Group, LLC (“Flagship”), to support its future growth strategy. Cascadia served as the exclusive financial advisor to LTF in the transaction.
Founded in 1977 by Jose and Mary Tamayo, the family business grew from a small storefront “Mexicattessen” in Santa Rosa, California to a formidable food processor serving retailers across the country. Today, LTF, known for its wide selection of tortillas and Mexican sauces and side dishes, is the largest nationally-distributed tortilla brand whose product portfolio is focused on true better-for-you, organic, and low carb categories.
“The Tamayo family built the LTF brand on product innovation, customer service, and the highest quality healthy tortillas,” explained Cascadia Managing Director John C. Siegler. “From day one, we were impressed with the team’s commitment to these values and their desire to find an experienced investor to assist in both broadening the LTF product portfolio and distribution reach. Flagship Food Group is that ideal partner. Rob Holland and Patrick Moulder immediately recognized the value of LTF’s premium brand and culture of innovation, and established a vision aligned with both the Tamayo family and LTF’s seasoned management team.”
The new partnership will build on the outstanding reputation that LTF cultivated within the food industry and community during the last four decades. Its 300 employees will remain in place and focused on the company’s vision to be the innovative brand leader in premium Mexican food.
“We are excited and eager to embrace Flagship Food Group and its entire family of companies and brands as supporters of LTF’s strategic growth plan,” said Jeff Ahlers, LTF CEO. “Their investment acumen and broader experience in the food industry will support and accelerate our strategy, especially given their success and enthusiasm within the Mexican food category. Our team greatly appreciated the assistance of Cascadia for introducing us to Flagship and preparing us for the due diligence process and post-transaction life.”
Majority owned by CREO Capital Partners, Flagship is a diversified food company that sells a wide range of food products and services under the 505 Southwestern, Lilly B’s, TJ Farm’s and other brands. Most of Flagship’s companies are rapidly expanding, having experienced double-digit annual growth in recent years.
“LTF has established its position as a highly-innovative challenger brand in a category that is dominated by a couple of large brands with significant distribution reach that sell commodity products,” said James Cartales, Cascadia Senior Vice President. The investment by Flagship should position LTF to capitalize on its product potential and begin to increase distribution in key geographies to meet consumer demand for its superior products.”
“The Tamayo Family is very grateful to the Cascadia Consumer team for helping us navigate a very complex deal environment,” added Sam Tamayo, chairman of the LTF board of directors. “Their transaction experience, industry knowledge, extensive relationships, and steady hand helped us select the perfect partner. We were very impressed with their advice, creative solutions, and deal management skills.”
The acquisition of LTF represents another successful transaction for Cascadia Consumer & Retail team in the branded food sector. Past transactions include the sales of Pretzilla and the Rogue Creamery, and the recapitalizations of Brazi Bites and Cascade Coffee.
For more information about this transaction, please contact the Cascadia Capital deal team or other senior members of our Food group:
John C. Siegler
Senior Vice President
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