US-based Badia Spices has sold a stake in the business to a group of investors.
News agency Reuters reported the Florida-headquartered food group has sold a majority stake to Panama-based investor and portfolio builder Bia Foods and US banking and investment group BDT & MSD Partners.
In a brief statement sent to Just Food confirming the investment, Bia Foods did not disclose what size stake has been sold, nor whether the investors now hold a majority share in the business.
It said: “Bia Foods and funds affiliated with BDT & MSD Partners have agreed to enter into a strategic partnership with the Badía family to support the continued growth and success of Badia Spices. The agreement is subject to customary closing conditions.”
BDT & MSD would not comment beyond Bia Foods’ statement.
Financial details were not disclosed.
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The stake would seem to confirm the veracity of a Reuters story from June which said family-owned Badia Spices was planning to put the business on the market for up to $1.2bn. The news agency cited sources close to the issue at the time.
Badia Spices was founded in Miami in 1967 by José Badía. His son Pepé has overseen the growth of the business in recent times. Bia Foods confirmed he will remain a shareholder of the company and will become honorary chairman.
The Hispanic food company is best known for its spices but has a portfolio of products, which also includes canned vegetables, oils, hot sauces, side dishes and tea.
Bia Foods was set up by food and beverage conglomerate Grupo Mariposa in 2017. It launched the private investment arm to buy food businesses in the US, Mexico and Latin America and has made a number of acquisitions.
BDT & MSD was established last year when tech entrepreneur Michael Dell’s family office and a merchant bank run by Byron Trott, a former Goldman Sachs banker known for his work with billionaire investor Warren Buffett, combined.
In June, Reuters reported that Badia Foods’ latest 12-month gross earnings were around $100m.
The company’s products are sold to retail, foodservice and wholesalers in more than 70 countries worldwide. Manufacturing and distribution take place at its production site and two distribution plants in Doral, south Florida.
Just Food has also asked Badia Foods for comment on the stake sale.
