New York, USA-based Palladium Equity Partners, LLC (along with its affiliates, “Palladium”) and its affiliates of the firm acquired a majority stake in USA-based provider of value-added warehousing, distribution and fulfilment third-party logistics (3PL) services to the consumer goods sector with a focus on Hispanic food and beverage brands, Source Logistics. The company announced the acquisition on November 3, 2023. However, it did not disclose the amount of the acquisition.
Republic Partners and Foley & Lardner acted as financial advisor and legal advisor, respectively, to Source Logistics. Besides, William Blair and Morrison & Foerster acted as financial and legal advisors, respectively, to Palladium.
What the Palladium Equity Partners officials have to comment
Chris Allen, a Partner of Palladium, said, “Led by a strong and experienced management team and supporting a range of customers, especially top Mexican and U.S. Hispanic food and beverage brands, Source Logistics is poised for further exceptional growth as it continues to focus on service excellence. We believe that the company is positioned to benefit from positive industry tailwinds, including the anticipated growth of the U.S. Hispanic population, which is projected to expand from 62 million people in 2020 to 75 million in 2030.”
Besides, Daniel Ilundain, Co-Head of Palladium’s Flagship Funds, commented, “Our Firm has invested over USD 1.3 billion in the U.S. Hispanic market across consumer, healthcare, services and industrial sectors. Source Logistics represents Palladium’s 20th platform investment addressing this rapidly growing demographic that accounts for $3.2 trillion in GDP. Source Logistics continues a long line of Palladium investments in the Hispanic food and beverage value chain, including Castro Cheese, Del Real Foods, Teasdale, Quirch Foods and Wise Foods.”
What the Source Logistics officials have to comment
Marcelo Sada, Chief Executive Officer of Source Logistics, further said, “Palladium is an ideal partner for Source Logistics as we continue to serve and seek to provide value to our customers and evaluate opportunities to add new, scaled capabilities and locations through add-on M&A opportunities. The Palladium team has demonstrated a deep understanding of our business, our customer universe, and the range of factors driving our sector today and the future, and we look forward to working closely with them.”
In addition, Raul Villarreal, Chief Operating Officer of Source Logistics, added, “The new partnership with Palladium serves as an excellent opportunity not only to consider the path ahead but to reflect on the amazing contributions of our customers and colleagues to Source Logistics’ growth to date. We are excited to further differentiate our offering and exceed our customers’ expectations as we move forward.”
About Source Logistics
In 1999, Marcelo Sada, the company’s Chief Executive Officer, and Raul Villarreal, its Chief Operating Officer, launched the company. The company serves its customers from 12 strategically located facilities, representing more than 2.3 million square feet, across four states – California, Texas, New Jersey and Oregon.
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