Benestar, Palmex unite in merger of snacks companies

DALLAS — Benestar Brands, a portfolio company of Dallas-based private investment firm Highlander Partners, LP, has merged with Palmex S. de R.L. de C.V., a portfolio company of Chicago-based Wind Point Partners. As part of the merger, Wind Point will become the majority shareholder of the combined business while Highlander will retain a significant minority stake.

The transaction creates what the investment firms described as “a powerhouse in the North American salty snack industry.”

Headquartered in Chicago, Benestar features a portfolio, with multiple brands in single categories like pork rinds and tortilla chips, which enables the company to hit a wide range of consumers across multiple channels. PORQ and 4505 provide pork rinds in restaurant-inspired flavors, while Mac’s is the company’s top-selling pork rind brand. Turkey Creek reaches the convenience store customer. Likewise, Cazo de Oro is a conventional tortilla chip brand, and Chicas is a non-GMO brand.

Benestar’s Pretzilla brand is in the soft pretzel bread and snack categories. Benestar acquired the Pretzilla brand from Miller Baking Co. in 2020. Following the merger Pretzilla will be spun off as a stand-alone business entity held by Highlander and Pretzilla’s management, including Bruce Myers, president and chief executive officer. Mr. Myers also will continue as president of the Benestar division within the combined company.

Benestar operates seven production facilities across North America in Chicago; Arlington, Texas; Milwaukee; Minford and Portsmouth, Ohio; City of Industry, Calif.; and Saltillo, Mexico.

Based in Monterrey, Mexico, Palmex manufactures a broad portfolio of wheat-, corn- and potato-based snack pellets, which the company described as an intermediate component in various salty snack products such as veggie sticks and straws, three-dimensional snacks, food carriers and wavy snacks. The company operates two manufacturing facilities.

“This powerful combination of Palmex and Benestar represents a transformative step in our journey,” said Jose Luis Prado, chairman and CEO of Palmex. Mr. Prado, who has more than 30 years of experience leading snack businesses at PepsiCo, Inc., will step into the role of chairman and CEO of the combined company. “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, added, “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 chairman of Benestar, added, “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.”