Grupo Palacios already markets a range of 'ring chorizos'. © Grupo Palacios
Spanish food company Grupo Palacios has completed two acquisitions that will strengthen its position in North America, particularly in the sale of products like chorizo and Spanish omelettes.
The group, based in La Rioja in the north of Spain, has consolidated its leadership in chilled foods with the acquisition of Precocinados Fuentetaja and reinforced its presence outside of Spain with the acquisition of Elore Holdings.
Fuentetaja is a manufacturer of chilled and ready-to-eat products like tortilla española, as well as chilled pizzas and other products. Elore is the company behind North America’s largest distributor of Spanish chorizo, Quijote, which is based in Florida and manufactures and distributes its own branded products – as well as importing and distributing Palacios-branded chorizo through retailers, wholesalers and foodservice companies in the US and Mexico.
Palacios expects the move to accelerate growth and diversify its business with an enhanced international presence and activity in new ready-to-eat categories.
Following the acquisitions of Fuentetaja and Quijote, Palacios will generate a turnover of more than €200 million, increasing the proportion of sales from international markets to more than 25%. It will operation six production facilities in Spain and one in the US, and its products will be present in more than 25 countries.
Palacios CEO Pedro Dominguez said: “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 specialities – 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 characterise 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.
“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.
“Both the Fuentetaja family and the Palacios family, Elore owners, have built very strong businesses, whose success will be further developed under the umbrella of Palacios.”
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