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US private equity firm Highlander Partners has announced the merger of its portfolio company, Benestar Brands, with Palmex, a Mexican snacks brand owned by Wind Point Partners. The move will see Wind Point become the majority shareholder of the combined business, while Highlander will retain a "significant" minority position. Headquartered in Illinois, US, Benestar Brands manufactures pork rinds and restaurant-style tortilla chips, as well as soft pretzel breads. Its brands include Pretzilla, Mac's, 4505, Turkey Creek, Cazo de Oro, Porq and Chicas Tortilla Chips. Benestar operates seven production facilities in North America, located in Chicago, Illinois; Arlington, Texas; Milwaukee, Wisconsin; Portsmouth, Ohio; Minford, Ohio; City of Industry, California; and Saltillo, Mexico. Palmex, based in Monterrey, Mexico, manufactures better-for-you and Hispanic snack pellets. These pellets serve as an "intermediate component" for a range of salty snacks, including veggie sticks, straws, 3D snacks, food carriers, wavy snacks and other distinctive forms. The merger will create a strong presence in the North American salty snack industry, making the combined entity as one of the leading providers of Hispanic and healthier salty snacks throughout the continent. As part of the transaction, the Pretzilla division of Benestar, known for its fresh pretzel bread and snacks, along with its manufacturing facilities in Milwaukee, Wisconsin, will be spun out as a standalone business entity. Highlander and Pretzilla's management, including president and CEO Bruce Myers, will hold ownership of this independent entity. Jose Luis Prado, the current head of Palmex, will assume the position of chairman and CEO for the merged organisation. Myers will continue in the role of president of the Benestar division in the combined company. Prado said: "This powerful combination of Palmex and Benestar represents a transformative step in our journey. 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 Hull, president and CEO of Highlander, commented: "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 Benestar chairman, 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 organisation."