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California-based dairy ingredient producer Valley Milk has formed Francisco Foods, a new entity to acquire substantially all assets of Rizo-Lopez Foods through bankruptcy proceedings in the US Bankruptcy Court for the Eastern District of California.

The move marks a strategic effort to preserve and revitalise a long-standing player in the Hispanic-style dairy segment while reinforcing Valley Milk’s commitment to the Central Valley dairy ecosystem.

Francisco Foods will operate as a joint venture, majority-owned by Valley Milk, with the Rizo family maintaining a significant ownership stake through Rilosa,, controlled by founders Edwin and Ivan Rizo.

Rizo-Lopez Foods will cease operating as a corporate entity, but its workforce, customer relationships and Tío Francisco brand will continue under the new structure.

Francisco Foods, headquartered in Modesto, California, has been established specifically to operate the acquired production assets and drive the next phase of growth for the Tío Francisco brand.

The Tío Francisco brand, recognised for more than 35 years for its Hispanic-style cheeses and cream products, will remain central to the business. Company leadership emphasised continuity in product quality and cultural heritage, alongside a renewed operational and financial foundation.

Damien Caton, CEO of Valley Milk, said: “This partnership is a natural extension of Valley Milk's commitment to the Central Valley community and the dairy industry. We are proud to work alongside the Rizo family to bring quality Hispanic-style dairy products back to consumers who have long valued this brand.”

Mike de Jager, chairman of the Valley Milk board, described the acquisition as aligned with the company’s broader mission of community stewardship and industry advancement.

“Francisco Foods represents an exciting new chapter, and we look forward to the positive impact it will have across the region for years to come,” he said.

Edwin Rizo, co-founder of Rizo-Lopez Foods, added: “The Tío Francisco brand was built on family, craft, and a deep connection to the Hispanic community, and that will never change. Partnering with Valley Milk gives us the foundation to come back stronger.”

Francisco Foods will continue producing its established range of Hispanic-style dairy products, positioning itself to re-enter the market with strengthened operational backing and supply chain support from Valley Milk.