FDBusiness.com

Grupo Empresarial Palacios Alimentación has completed two acquisitions which will strengthen its position as a leader in the Spanish provenance food sector. Firstly, the group is consolidating its leadership in chilled foods with the acquisition of Precocinados Fuentetaja. In addition, Palacios is reinforcing its international presence with the acquisition of Elore Holdings.

With these transactions, Palacios accomplishes a number of the objectives set out when The Carlyle Group acquired the company in March 2015 – (i) to accelerate the growth of the company organically and inorganically; (ii) to diversify the business with a more international presence and other ready-to-eat categories; (iii) to further strengthen its leadership in its key areas.

Fuentetaja is the leading manufacturer of chilled ready-to-eat Spanish Omelettes (Tortilla Española) through its own brand and also through private label products made for the major retailers in Spain, across Europe and America. The company has also presence in other categories such as chilled pizzas and ready to eat products and operates two production facilities in central Spain. Since its creation in 1993, sales have grown consistently, including an important international component. Palacios has acquired the entire capital of Fuentetaja from the founding Fuentetaja family.

Quijote is the leading distributor of Spanish chorizo in North America. Based in Florida, the company manufactures and distributes its own branded products as well as imports and distributes Palacios branded chorizo through retailers, wholesalers and foodservice companies in the USA and Mexico.

Following the acquisitions of Fuentetaja and Quijote, Palacios will generate a turnover of more than €200 million, with more than 25% from international markets, and will have six production facilities in Spain and one in the USA. Its products will be present in more than 25 countries.

Pedro Dominguez, chief executive of Palacios, comments: “These acquisitions meet a number of our strategic objectives set when The Carlyle Group invested in our company. The integration of both companies consolidates our leadership in two of our specialties – chorizo and chilled Spanish tortillas, as well as increases our presence in other categories of ready-to-eat meals. In addition, they enhance our ability to serve an increasingly diverse customer base with the quality and safety that characterize Palacios product offering. We will continue to invest in innovation in the ready-to-eat categories to meet the adapting needs of our customers and the end-consumers.”

He adds: “Both Fuentetaja and Quijote will also increase our brand portfolio, through the leading brands in their respective markets, and increase our international presence, especially in North America, where there is a growing demand for quality Spanish provenance products.”