Beans distributor Teasdale Foods Inc., backed by Snow Phipps Group LLC, acquired Mesa Foods from Encore Consumer Capital. The purchase is part of Snow Phipps’ strategy to build the PE firm’s Hispanic foods platform. Encore invested in Mesa in 2013.

Mesa, founded in 1984 and based Louisville, Kentucky, produces private label tortillas, tortilla chips and taco shells. The target’s products are distributed in restaurants and grocery stores.

“We are proud of the unique consolidation platform that we have built and are excited about the prospects for acquiring more businesses focused on this attractive segment,” says Snow Phipps partner Sundip Murthy. Financial terms on the Mesa deal were not disclosed.

Earlier in 2016, Atwater, California-based Teasdale bought Bruce Foods Corp.’s Mexican brands. In 2015, Teasdale acquired Jardine’s Foods along with Casa Fiesta. Snow Phipps purchased Teasdale from Palladium Equity Partners LLC in 2014. Teasdale is not the only food company that has been interested in Hispanic products. Hormel Foods has also been growing in the space. Lincoln International advised the sellers on the Mesa deal.

Food companies have been attractive targets in the mid-market. ConAgra Foods Inc. (NYSE: CAG) is selling the JM Swank food ingredient distribution business to Platinum Equity; Dean Foods Co. (NYSE: DF) bought Friendly’s Ice Cream LLC’s retail ice cream business; and Hormel Foods Corp. (NYSE: HRL) purchased nut butter producer Justin’s LLC.

Food and beverage industry