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Palladium Equity Partners Acquires Manufacturer of La Vaquita Products, Castro Cheese Company
NEW YORK, NY (September 17, 2007) — Palladium Equity Partners, LLC, a New York-based private equity firm, announced today that it has acquired Castro Cheese Company Inc., a leading manufacturer, marketer and distributor of Hispanic cheeses and creams. Castro Cheese is based in Houston and markets its products under the “La Vaquita” brand.
Alex Ventosa, a Managing Director of Palladium, said, “The La Vaquita brand is well known throughout Texas for the high quality and authenticity of its products. Led by founder and President Maria Castro, Castro Cheese has established a 30-year track record of growth and development, maintaining the quality of their all-natural cheeses and creams while expanding their portfolio of branded dairy products. Sra. Castro has built a profitable company with a strong management team and talented employees. We look forward to working with them to pursue expansion through new markets, new retail channels, and the introduction of new products.”
In 1971, Maria Castro emigrated from the state of San Luis Potosí, México to Houston and soon found high demand among friends and neighbors for her authentic Queso Fresco cheese. She converted her family’s garage into a mini-factory, but soon expanded into larger facilities in Houston and incorporated Castro Cheese Company in 1977. Today, the Company is the second largest Hispanic cheese company in the U.S., according to Information Resources, Inc. The Company’s highly trained staff is dedicated to both the quality of their “La Vaquita” brand products and to the family spirit that exists throughout the Company.
Maria Castro, founder of the “La Vaquita” brand, said, “Our Company can celebrate over thirty years of growth and success because we have kept our heritage as an Hispanic company making authentic products of the highest quality as a central part of everything we do. I am delighted to welcome Palladium, a firm with a distinctive focus on companies that serve the market for Hispanic products and services, as our partner. They have a strong track record as an investor in food businesses and are well-positioned to support our growth as we seek to introduce our La Vaquita products to a broader market while preserving the character that has made us successful.”
Ms. Castro will be retiring as President of the company, but will continue to serve as a Director and as an advisor. Palladium Operating Executive J. Robert Hall, an investor in food-related industries and an industry veteran who has served as an executive with Nabisco, Kraft and Nestlé, will serve as Interim CEO until a permanent CEO is identified.
Emporia Capital Management provided senior debt.
About Castro Cheese Company
Founded in 1971, Castro Cheese Company (www.castrocheese.com) is a leading manufacturer, marketer and distributor of queso fresco and other varieties of Hispanic cheeses and creams. Castro’s products are marketed under the La Vaquita brand in Texas and other southwestern states and are known for their quality, authenticity and freshness.
About Palladium Equity Partners
Palladium Equity Partners, LLC (www.palladiumequity.com) is an investment firm targeting companies in food/restaurants, financial and business services, consumer/retail, healthcare, manufacturing, and media. Palladium has a focus on companies that are well-positioned to capitalize on the fast-growing U.S. Hispanic market. Among other portfolio companies, Palladium’s food industry investments include Taco Bueno, a leading quick-serve restaurant chain specializing in Hispanic cuisine, Wise Foods, maker of the Wise line of salty snacks, and Sahale Snacks, producer of natural and healthy gourmet snacks. The principals of Palladium have invested over $2.5 billion of equity in more than 50 portfolio companies over the last two decades. Formed in 1997, Palladium currently has capital under management in excess of $750 million.
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