The Carlyle Group to acquire Palacios Alimentación, a manufacturer and distributor of specialty Spanish food
Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has agreed to acquire a majority stake in Palacios Alimentación from ProA Capital, Partners Group and Talde. Palacios Alimentación is a Spanish food manufacturer, specializing in cured meats, frozen pastries, pizzas, tortillas and other ready-meals.
Capital for this investment will come from Carlyle Europe Partners IV (CEP IV), a European upper-mid market buyout fund. This will be the fourth investment by the fund. The transaction is expected to close in the second quarter of 2015, subject to customary closing requirements and regulatory approvals.
With revenues of approximately 150 million euros in 2014, Palacios is well positioned to start a new phase of growth with Carlyle’s backing. Strongly internationalized, Palacios generates 25% of its revenue from outside of Spain and is present in more than 30 countries, including Portugal, France and the UK.
Mario Pardo, Director of The Carlyle Group said: “Palacios supplies retail distribution groups as well as major food chains where it is known for its innovations, service and quality. We look forward to working with the current management team to further boost the next steps in internationalization for the Group, leveraging on those relationships, the leadership associated to its brand name and the experience Carlyle also has in helping to build international businesses.”
Pedro Domínguez, the company’s CEO, added: “We are excited to partner with The Carlyle Group. Their industrial expertise and global network will significantly contribute to the continuing development of our business and our work force and they will support the next phase of our growth.”
Santiago Gómez, partner at ProA Capital, emphasized: “It has been a privilege to partner with such an outstanding management team over these past few years. We are sure that Palacios will continue growing successfully, developing innovative products and expanding internationally”.
Founded in 1960 as a family butcher business, the great leap ahead for the company began in 1983, with the inauguration of their sausage factory in La Rioja (Spain). Palacios and its brand has been firmly established as the leading company in Spain manufacturing and marketing U-shape chorizo sausage products. Since the late 1990s the company implemented a product diversification strategy introducing other value-added food products, notably including pizzas, tortillas, frozen pastries. Currently Palacios has a turnover of over approx. EUR 150 million, has four production facilities in Spain, employs a workforce of over 630 employees and its products are marketed and delivered to over 30 countries.