Transaction Will Expand CMI’s Growth Strategy in the United States
Oklahoma and MIRA LOMA — Corporación Multi Inversiones (“CMI”), a family-owned multilatina corporation with a 104-year legacy, more than 50,000 team members, and operations in 16 countries across Latin America and the United States, has entered into a definitive agreement to acquire a significant equity stake in Del Real Foods (“Del Real”), a leading Hispanic refrigerated foods company, from middle market private equity firm, Palladium Equity Partners, LLC (along with its affiliates, “Palladium”).
Under terms of the agreement, the founders of Del Real Foods, the Cardenas family, and Palladium, will each own a minority equity stake in Del Real alongside CMI. Palladium acquired a major stake in Del Real from the Cardenas family in 2016. The transaction is subject to customary regulatory approvals.
Juan José Gutiérrez, Chairman of CMI Foods, stated, “As a family-owned business that started with the dream of ‘Don Juanito’—my grandfather—in a small town in Guatemala 104 years ago, we take immense pride in continuing our legacy of growth and success, enriched with thousands of great stories to tell. After 22 years in the U.S. with Pollo Campero, this investment in Del Real Foods, along with our new partners, the Cardenas family and Palladium, significantly expands our footprint in this geography, giving CMI a unique position to continue its growth plan in the U.S. market. We remain deeply committed to investing in all the countries and communities that have supported our journey and seen us grow, while paving the way for future success over the next century, making our purpose true: ‘With family warmth, we create opportunities that change lives.‘
Del Real Foods, with manufacturing plants in Mira Loma, California, and Moore, Oklahoma, is a leading refrigerated Hispanic food brand and pioneer of authentic, Hispanic meal solutions, handhelds and snacks, and sides that deliver on taste, quality, and convenience. The company distributes its products to club, retail, foodservice, and wholesale channels across the U.S. With this strategic investment, CMI solidifies its position in the U.S. market, further diversifying its portfolio while reinforcing its operations and commitment to delivering high-quality products that resonate with consumers.
José Gregorio Baquero, CEO of CMI Foods, stated, “We are thrilled about the journey ahead with Del Real Foods, a company that shares our commitment to delivering high quality products that resonate with consumers and uphold the values of our culture. We are grateful to the Cardenas family and Palladium for their invaluable support in enabling this growth. This partnership will strengthen our U.S. presence and unlock new opportunities for expansion. The ‘secret sauce’ behind CMI’s success is that we are a family-owned business, which gives us a long-term vision focused on the well-being of our people and building lasting relationships with our partners and consumers.”
Michael Axelrod, Chief Executive Officer of Del Real Foods, expressed gratitude for Palladium’s partnership, noting, “During our time together, Del Real has experienced substantial growth and transformation, solidifying our market position.” He added, “We’re thrilled to enter this new chapter with CMI, which brings exceptional opportunities for Del Real Foods. By leveraging CMI’s strengths, we’re confident we can deliver even greater value to our consumers and further empower our employees.
Justin Green, Partner and Co-Head of Flagship Funds at Palladium, stated, “Palladium is extremely proud of the results achieved at Del Real Foods, particularly the remarkable growth and acceleration over the past three years. We want to express our deep appreciation to their entire leadership team, including CEO Michael Axelrod and President and CFO Manuel Martinez, the Cardenas family, and Chairwoman Giannella Alvarez, for an incredible partnership. We believe Del Real will continue to thrive and grow under CMI, and we are excited to remain a minority investor in the company.”
Marcos Rodriguez, Chairman and Chief Executive Officer of Palladium, added, “For the past 27 years, we have generated strong returns for our investors by partnering with visionary founders, entrepreneurs and business leaders like the Cardenas family and now the Gutierrez and broader CMI family. We believe that CMI, with its rich legacy and tremendous accomplishments throughout Latin America and the United States, is a perfect fit for Del Real. The transaction represents the third portfolio exit of 2024, which will result in realizations totaling over $1 billion to our funds and making 2024 the largest distribution year in Palladium’s history.”
The Cardenas Family states, “Since 1957, we have dedicated ourselves to delivering the rich flavors of our traditions and the warmth of home to our customers through the finest recipes from our Hispanic kitchen. We thank Palladium for the great partnership in expanding Del Real to where it is today. This new partnership with CMI, a family-owned corporation, represents a wonderful opportunity to further our legacy. We warmly welcome the CMI family and look forward to growing our business together.”
For CMI, this investment represents a significant milestone, making the U.S. the second-largest business footprint for CMI Foods, alongside the aggressive expansion of its Pollo Campero restaurant chain. As CMI, Del Real Foods, and Palladium come together to shape a common future, they are committed to preserving their rich culinary heritages while innovating to meet the evolving tastes of modern consumers. This partnership will enhance the overall consumer experience, offering a wider array of high-quality, slow-cooked meats as well as homemade sauces, sides and snacks, while also expanding their market presence.
Financial terms of the agreement were not disclosed. The transaction is undergoing customary regulatory review.
Hunton Andrews Kurth LLP and EY served as advisors to CMI Foods. Piper Sandler & Co. served as financial advisor to Del Real on the transaction. Houlihan Lokey Capital, Inc. served as advisor to the Board of Managers of Del Real. Greenberg Traurig, LLP served as legal advisor to Del Real.
About CMI
Corporación Multi Inversiones (CMI) is a multilatina family-owned corporation with over 100 years of history, generating economic, social, and environmental value in the region. With more than 50,000 employees and a presence in over 16 countries, (including many in Latin America and the United States), CMI operates through its business groups: CMI Foods and CMI Capital. The company creates a sustainable impact in the communities where it operates by delivering excellence and high-quality products and services, positioning itself as one of the main business groups in Latin America. At CMI, with family warmth, we create opportunities that change lives. For more information, visit: www.somoscmi.com
About Palladium
Palladium is a middle market private equity firm with over $3 billion of assets under management. The firm seeks to acquire and grow companies in partnership with founders and experienced management teams by providing capital, strategic guidance and operational oversight. Since its founding in 1997, Palladium has invested in more than 220 companies (41 platforms and more than 180 add-ons). A private equity fund affiliated with Palladium Equity Partners, LLC has been invested in Del Real Foods since October 2016. For more information, visit https://www.palladiumequity.com.
About Del Real Foods
Del Real Foods, headquartered in Jurupa Valley, California, specializes in refrigerated, heat-and-eat Hispanic foods. Its products are known for authentic flavors and high-quality ingredients, providing consumers with convenient meal options that reflect traditional family recipes. Del Real Foods makes tamales, carnitas, salsas, pupusas, and other authentic products— all created by hand with fresh ingredients and nothing artificial — and inspired by the Mexican heritage of the Cardenas’ founding family. For more information, please visit https://delrealfoods.com.
