PE-backed Sabrosura Foods buys queso dip maker Pancho’s

Sabrosura Foods, a portfolio company of Centre Partners, has acquired Pancho's Mexican Foods Inc, a maker of queso dip.

Sabrosura Foods, a portfolio company of Centre Partners, has acquired Pancho’s Mexican Foods Inc, a maker of queso dip. No financial terms were disclosed. Cascadia Capital served as financial advisor to Pancho’s on the deal.

PRESS RELEASE

BLOOMINGTON, Minn., Nov. 16, 2021 /PRNewswire/ — Sabrosura Foods, LLC (“Sabrosura Foods”), a leading marketer and distributor of branded Hispanic food products, today announced the acquisition of Pancho’s Mexican Foods, Inc. (“Pancho’s”), the manufacturer of America’s favorite queso dip since 1956. Pancho’s will join the Sabrosura Foods family of well-known brands, which include: El Viajero, La Morenita, Reynaldo’s and Bio Salud!. Sabrosura Foods is a natural partner for Pancho’s to continue its rapid expansion nationwide across the mass, club and grocery channels. Terms of the transaction were not disclosed. Sabrosura Foods is a portfolio company of Centre Partners.

Founded in 1956, Pancho’s gained its popularity as a local Memphis favorite before evolving as a leading brand in the refrigerated queso dip category, now found at more than 1,200 stores nationwide. Pancho’s maintains a highly loyal consumer following because of its great tasting, high quality product and exclusive use of fresh ingredients, with no artificial fillers and flavors.

“We couldn’t be more excited to join the Sabrosura Foods family,” said Brenda O’Brien, President of Pancho’s Mexican Foods, Inc. “Pancho’s has been in my family for 65 years, and we have been so grateful to bring people together over delicious food. Now, we are looking forward to our next chapter as part of the Sabrosura Foods team.”

The acquisition adds an historic, 60-year-old consumer-loved brand to Sabrosura Foods’ portfolio of Hispanic brands and further enhances the company’s position in the fast-growing queso dip category.

“Sabrosura Foods is thrilled to acquire Pancho’s, further building our portfolio of Hispanic cheese products available in stores nationwide. A key pillar of Sabrosura Foods’ growth strategy has always been focused on acquiring complementary product capabilities,” said Jeff Caswell, CEO of Sabrosura Foods. “We are proud to be able to continue Pancho’s legacy and are eager to introduce Pancho’s queso dip to even more consumers across the fast-growing snacking category.”

Cascadia Capital served as the exclusive financial advisor to Pancho’s, Dechert LLP served as the exclusive legal advisor to Sabrosura Foods and Centre Partners and Giannuzzi Lewendon served as the exclusive legal advisor to Pancho’s.

About Sabrosura Foods
Headquartered in Bloomington, Minnesota, Sabrosura Foods is a leading manufacturer of Hispanic foods, including cheeses, desserts and meats. Sabrosura has several authentic Hispanic brands including El Viajero, La Morenita, Reynaldo’s and Bio Salud! alongside broad private label capabilities. Sabrosura maintains a national footprint with multiple best-in-class facilities that serve a wide range of end markets. For more information, please visit www.sabrosurafoods.com.