US-based private investment firm Highlander Partners has announced the merger of its Benestar Brands with Palmex, a Mexican snacks peer owned by Wind Point Partners.
As part of the transaction, Wind Point is set to become the majority shareholder in the merged entity, with Highlander maintaining a “significant minority position.”
Simultaneously, the Pretzilla division of Benestar Brands, specializing in fresh pretzel bread and snacks, will be separated into an independent business entity. This standalone entity will be owned by Highlander and managed by Pretzilla’s leadership, including President and CEO Bruce Myers.
Jose Luis Prado, the present chairman and CEO of Palmex, is slated to assume the position of chairman and CEO for the integrated organization. Meanwhile, Myers will maintain his role as president of the Benestar division within the consolidated company.
Prado has “over 30 years experience of leading snack businesses”, said Highlander in a statement. The chief executive has headed Evans Food Group, a former Wind Point portfolio company, was president of Quaker Oats North America, and CEO of Grupo Gamesa-Quaker.
Prado stated that the merger will expedite growth and align resources to effectively innovate and seize emerging market trends, particularly within the ethnic and better-for-you categories.
“This powerful combination of Palmex and Benestar represents a transformative step in our journey,” he said. “Our goal is to leverage this combination to introduce a wider range of innovative products, thereby enhancing our portfolio of offerings and market reach.”
Highlander added, “The merger creates a powerhouse in the North American salty snack industry, positioning the combined entity as one of the leading providers of Hispanic and better-for-you salty snacks across the continent.”
Jeff Hull, CEO of Highlander, remarked that the amalgamation of the two companies represents a noteworthy milestone in Benestar’s expansion plan. Hull emphasized that Benestar’s strategy involves both organic growth and expansion through multiple acquisitions.
“We’re thrilled about the endless possibilities this partnership opens up, including leveraging each company’s unique capabilities to drive growth and market penetration,” he said.
Jeff Partridge, a partner at Highlander, expressed that the amalgamation of Benestar’s distinguished brand portfolio with Palmex’s cutting-edge pellet extrusion capabilities will bolster innovation and expedite growth.
“Highlander will remain actively involved with the combined business from the board level, using its extensive food-industry expertise to provide strategic guidance to the combined organisation,” said Partridge.
Pretzilla operates manufacturing facilities located in Milwaukee, Wisconsin.
Based in Chicago, Illinois, Benestar serves as the corporate headquarters and functions as a holding company for various snack brands, such as Mac’s, 4505, Turkey Creek, and Pretzilla.
It runs seven manufacturing facilities throughout North America.
The owner of Mac’s produces pork rinds and tortilla chips, catering to markets both domestically and internationally.
Based in Monterrey, Mexico, Palmex is a third-party manufacturer specializing in better-for-you and “Hispanic” snack pellets. The company manufactures a range of salty snack products, including veggie sticks and straws.
Palmex operates production facilities in Puebla and Monterrey, Mexico, along with nine distribution centers—eight located within Mexico and one in Los Angeles.
It markets its products in diverse countries across North, South, and Central America, including the United States, Canada, Mexico, Colombia, Brazil, and Australia.
