Secondary Buyout • Food

Greyrock Capital Group and Canum Capital Partners Acquire Paleteria La Michoacana

On April 1, 2016, mezzanine finance firm Greyrock Capital Group and private equity firm Canum Capital Partners acquired food company Paleteria La Michoacana from CVF Capital Partners

Acquisition Context
  • This is Greyrock Capital Group’s 4th and Canum Capital Partners’ 1st transaction in the Food sector.
  • This is Greyrock Capital Group’s 52nd and Canum Capital Partners’ 1st transaction in the United States.
  • This is Greyrock Capital Group’s 12th and Canum Capital Partners’ 1st transaction in California.
Investment Fate
  • Paleteria La Michoacana was sold to a strategic buyer in 2021.

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M&A Deal Summary

Date April 1, 2016
Target Paleteria La Michoacana
Sector Food
Buyer(s) Greyrock Capital Group
Canum Capital Partners
Sellers(s) CVF Capital Partners
Deal Type Secondary Buyout

Target Company

Paleteria La Michoacana

Modesto, California, United States
Paleteria La Michoacana is a producer, marketer, and distributor of premium ice cream and other fine desserts. The Company is known for its fine quality and methods used to produce its paletas, using natural fruits and ingredients of the highest quality. Paleteria La Michoacana was founded in 2002 and is based in Modesto, California.
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Buyers Overview 2

Buyer

Greyrock Capital Group

Walnut Creek, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 350M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Greyrock Capital Group provides mezzanine debt and equity capital to finance buyouts, recapitalizations and growth needs of middle market companies. Greyrock looks to invest between $8 and $40 million of equity and/or junior capital in companies with minimum revenues of $10 million and at least $2 million of EBITDA. Greyrock prefers companies in defensible markets with low cost structures. Greyrock Capital was formed in 2002 and has offices in San Francisco, California; Chicago, Illinois; and Westport, Connecticut.


Deal Context for Buyer #
Overall 52 of 63
Sector: Food 4 of 5
Type: Secondary Buyout 11 of 12
State: California 12 of 15
Country: United States 52 of 62
Year: 2016 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-11-04 Capco

Denver, Colorado, United States

Capco is a manufacturer of ceramic tile, stone tile, and stone slabs from sources around the globe. Capco was founded in 1977 and is based in Denver, Colorado.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-01 Cardinal Packaging Products

Crystal Lake, Illinois, United States

Cardinal Packaging Products, Inc. is a distributor of retail packaging and industrial packaging products which includes blister packaging, packaging materials, custom thermoforming, corrugated and cardboard boxes. Cardinal Packaging Products was founded in 1978 and is based in Crystal Lake, Illinois.

Sell -
DESCRIPTION

Canum Capital Partners is a private investment firm focused on acquiring and investing in lower middle-market businesses with $10 to $100 million of revenue. The Firm will consider opportunities across the US, with a preference for Western US-based businesses. Sectors of interest include consumer products/services, food/beverage, retail, niche manufacturing, value-added distribution, and business services. Prospective transaction situations include business owners seeking liquidity, divestitures, growth capital financings, recapitalizations, and distressed/special situations. Canum Capital Partners is based in San Francisco, California.


Deal Context for Buyer #
Overall 1 of 1
Sector: Food 1 of 1
Type: Secondary Buyout 1 of 1
State: California 1 of 1
Country: United States 1 of 1
Year: 2016 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-19 Paleteria La Michoacana

Modesto, California, United States

Paleteria La Michoacana is a producer, marketer, and distributor of premium ice cream and other fine desserts. The Company is known for its fine quality and methods used to produce its paletas, using natural fruits and ingredients of the highest quality. Paleteria La Michoacana was founded in 2002 and is based in Modesto, California.

Sell -

Seller Profile 1

SELLER

CVF Capital Partners

Davis, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2005
PE ASSETS 385M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

CVF Capital Partners is a private investment firm created to provide growth capital for small to mid-sized businesses located in the California Central Valley. CVF looks to commit $5 to $15 million of capital in the form of mezzanine debt to companies with revenues of 5 million, and at least $1 million of cash-flow. CVF funds are generally used to support business expansions, acquisitions, or to refinance. CVF was formed by the principals of Gael Partners. CVF Capital Partners was founded in 2005 and is based in Davis, California.


Deal Context for Seller #
Overall 9 of 18
Sector: Food 1 of 1
Type: Secondary Buyout 3 of 6
State: California 6 of 11
Country: United States 9 of 18
Year: 2016 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-12-31 Aptyx

Tempe, Arizona, United States

Aptyx is a manufacturer of custom dip molded, dip-coated, and injection molded parts. MDI specializes in short run, small batch, custom molded products primarily for U.S.-based OEM customers in industrial, medical, and consumer end markets. Aptyx was founded in 1998 and is based in Tempe, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-01 Source Logistics

The Woodlands, Texas, United States

Source Logistics is a provider of value-added warehousing, distribution and fulfillment third-party logistics (3PL) services. Source Logistics was founded in 1999 and is based in The Woodlands, Texas.

Sell -