After nearly eight years, TSG Consumer Partners finally decided to let go of its chilled Mexican food business, Don Miguel Mexican Foods.

Although deal terms were not disclosed, a source familiar to the deal said the sales price was between $120 million to $200 million.

Don Miguel will be sold to MegaMex Foods, a joint venture formed by NYSE-listed Hormel Foods and Herdez Del Fuerte S.A. de C.V. The deal is set to close by October 2010 given regulatory approval and customary closing conditions.

Don Miguel’s chairman, Steve Charton acquired the business ten years ago. By October 2002 TSG tapped into its fourth fund to invest in the company and helped it become a leading domestic fresh and frozen Mexican food company.

This will mark the second exit for TSG this year. In May, the private equity firm sold its cosmetic investment, Smashbox Beauty to The Estée Lauder Companies. Other notable exits from the firm include the sale of PureOlogy to L'Oreal, VitaminWater and the exit of Smart Balance.

Calls into TSG and MegaMex were not returned by press time. Don Miguel declined to comment.

The seller was advised by Scott LaRue and Matthew Roghair of Piper Jaffray & Co. Eva Davis of Kirkland & Ellis LLP provided legal counsel. MegaMex financial advisors were David Epstein and John Loeb from the J.H. Chapman Group.

This article was updated at 1:05 EST, September 8, to reflect sales price.