Deals

Mexican food company benefits from $121m loan

Palladium’s acquisition of a significant stake in California-based Del Real Foods was backed with a $121m senior debt facility arranged by Antares.

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Mixed mexican food. Party food. Guacamole, nachos, fajita, meat tacos, salsa, peppers, tomatoes on a wooden table. Top view. Tex-mex cuisine. Assorted appetizers. Cuisine of Mexico

Private debt firm Antares Capital has backed the private equity acquisition of Mexican food chain Del Real Foods by Palladium with a $121.6 million senior debt facility.

Del Real Foods was established in 2002 by the Cardenas family. The California-based company sells Mexican food products, including prepared meats and fire-roasted salsa to supermarket retailers across the US.

Further details on the loan were not disclosed by the firms involved, although Palladium said it had acquired a “significant” stake in the company.

Last year, the Canadian Pension Plan Investment Board acquired Chicago-based Antares in a $12 billion deal and has since relaunched its Mid-Market Lending Growth Program alongside LStar. In August, sister publication PDI revealed the firm’s plans to work with third-party institutional investors to complete unitranche and senior secured credit deals on a recurring basis.

“Del Real is a company well positioned for growth, both regionally and nationally, with its authentic, on trend products,” said Tim Brand, vice president at Antares.

Palladium managing director Luis Zaldivar said: “We believe that Del Real is poised to benefit from several macro trends that are dramatically reshaping consumer food choices.”

Established in 1997, Palladium focuses on investing in the mid-market and has $2 billion of assets under management. The firm invests in a number of industries, including food, financial services and healthcare.