Highlander Partners L.P., a Dallas-based private investment firm, is announcing the merger of its portfolio company, Benestar Brands, with Palmex S. de R.L. de C.V., a portfolio company of Wind Point Partners. In this strategic move, Wind Point will become the majority shareholder of the combined business while Highlander will retain a significant minority position.

Based in Chicago, Benestar Brands operates as a holding company for brands of snack products, including Mac's, 4505, Pretzilla, Turkey Creek, Cazo de Oro, PORQ and Chicas Tortilla Chips. These brands encompass a variety of snack options, including pork rinds, tortilla chips and other extruded snack products. Benestar Brands is a manufacturer of pork rinds, serving both domestic and international markets. The holding company operates seven production facilities across North America.

Headquartered in Monterrey, Mexico, Palmex is a manufacturer of better-for-you and Hispanic snack pellets, an intermediate component in various salty snack products.

Jose Luis Prado, the current chairman and CEO of Palmex, will step into the role of chairman and CEO for the combined organization. With over 30 years of experience leading snack businesses at PepsiCo in the U.S. and Latin America, Prado brings a wealth of industry knowledge to the table. Bruce Myers will continue to serve as president of the Benestar division within the combined company.

"This powerful combination of Palmex and Benestar represents a transformative step in our journey," said Prado. "It not only accelerates our growth trajectory but also aligns our resources to innovate and capture emerging market trends effectively, both within the ethnic and better-for-you categories. Our goal is to leverage this combination to introduce a wider range of innovative products, thereby enhancing our portfolio of offerings and market reach."

Jeff L. Hull, president and CEO of Highlander Partners, said, "Uniting Benestar and Palmex marks a significant milestone in our strategic expansion. We have worked hard on building Benestar organically and through multiple acquisitions into a premier branded snack platform with a broad portfolio of exceptional snack products. We're thrilled about the endless possibilities this partnership opens up, including leveraging each company's unique capabilities to drive growth and market penetration."

Jeff Partridge, partner at Highlander and former Benestar chairman, said, "The snack market is rapidly evolving, and this merger is a game-changer. By combining Benestar's renowned brand portfolio with Palmex's state-of-the-art pellet extrusion capabilities, we're setting the stage for a new chapter of innovation and accelerated growth at the company. 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 organization."

Katten and Creel, Garcia-Cuellar, Aiza y Enriquez SC served as legal counsel. Alvarez and Marsal provided transaction advisory services, and RSM provided accounting and tax services. Antares Capital provided financing facilities in support of the merger transaction.

Source: Highlander Partners L.P.