The transaction is aligned with Flagship’s aim to further strengthen its share of the Hispanic food category and follows its acquisition of La Tortilla Factory in February. Flagship said the two companies are complementary and positions it as one of the top 10 branded tortilla companies in the country.
Flagship is a diversified food company that sells a wide range of food products and services under the 505 Southwestern, La Tortilla Factory, Lilly B’s, Hatch Kitchen, TJ Farms and other brands. Under Creo’s ownership, its brands have experienced significant 15-fold growth and expanded national distribution. 505 Southwestern, crafted with New Mexico green chiles and made in Albuquerque, today is the country’s largest jarred green chili brand.
“We are building a world-class, scaled, diversified food company,” said Rob Holland, founder and managing partner of Creo Capital Partners.
“The Hispanic foods category has been our principal focus for nearly a decade, and the addition of Tortilla King expands both our capabilities and geographic footprint.”
Tortilla King’s current executive team will remain in place under its new ownership, while co-founder Juan Guardiola remains a shareholder and president of the company.
The Moundridge-headquartered company produces a range of flour and corn tortillas, tortilla chips and Mexican products – along with low carb, net zero carb and gluten-free options – under the Mama Lupe, La Comida and L’il Guy brands for food companies and national retailers. Its plant in the heartland of the US has close proximity to its raw material suppliers, while its inhouse DSD (direct store delivery) enables quick turnaround in distribution.
'Makes sense for all'
“I’ve known the team at Flagship for many years, and we’ve been a supplier and partner of theirs across several of their product portfolios,” said Guardiola.
“Coming together as one company made sense for them, for me and for our valued employees and customers.”
According to Forrest Kragten, a principal at Creo, the investment will support a significant expansion of the Tortilla King operation in Kansas.
“We’re excited to bring more volume and production to this area and to this outstanding team,” he said.
The financial terms of the transaction have not been disclosed.