Benestar Brands, a salty snack business in the Highlander Partners L.P. portfolio, will merge with Palmex S. de R.L. de C.V., which is a portfolio company of Wind Point Partners (which will become the majority shareholder of the combined business), according to a release sent by Highlander Partners.
Also, as part of the deal struck, the Pretzilla division of Benestar and its manufacturing facilities in Milwaukee, Wis., will be spun off into a standalone business held by Highlander and Pretzilla’s management (including president and CEO Bruce Myers).
The new Benestar-Palmex merged company will be positioned as a leading provider of Hispanic and better-for-you salty snacks in North America. Benestar operates as a holding company for snack brands such as Mac’s, 4505, Turkey Creek, Cazo de Oro, PORQ and Chicas Tortilla Chips, providing pork rinds, tortilla chips and other extruded snacks to consumers. Benestar holds seven production plants in North America (Chicago; Arlington, Texas; Milwaukee, Wis.; Portsmouth and Minford, Ohio; City of Industry, Calif.; and Saltillo, Mexico).
Palmex is headquartered in Monterrey, Mexico, and produces better-for-you and Hispanic snack pellets, an intermediate component used in various salty snack products. Jose Luis Prado, current chairman and CEO of Palmex, will hold the same position with the combined company, while Myers will continue to serve as president of the Benestar division within the company organization.
Pretzilla, which will be spun off, produces pretzel buns, rolls, bites and sticks, and celebrated 100 years in business this year, according to the company’s web site.