This is a well-established West Texas food manufacturer with more than 30 years of operating history, specializing in authentic corn tortillas and tortilla chips produced through the traditional nixtamalization process.

The company uses non-GMO whole corn to produce preservative-free products with a distinctive flavor and quality profile that has proven difficult for regional competitors to replicate. The business maintains strong gross margins, a streamlined production process, limited commodity inputs, and consistent demand from long-standing foodservice customers.

A major strength of the company is its approximately 50-year relationship with a regional restaurant chain that has relied on the business’s products since its founding. This relationship is supported by consistent order volumes, dependable service, strategic proximity to the customer’s distribution operations, and a product that has not been successfully replicated by another regional supplier.

The business has operated successfully under absentee ownership for several years. An experienced management team oversees day-to-day operations, with the current owner spending fewer than five hours per week on the business.

The acquisition includes the operating company, specialized production equipment, delivery assets, and a company-owned manufacturing facility located on approximately three acres. The real estate is estimated to be worth approximately $1.7 million and is included in the asking price.

Current operations utilize only a portion of available production capacity. Management believes revenue could potentially increase by approximately two to two-and-a-half times through additional production shifts without requiring significant capital investment.

The business is being offered near the seller’s 2020 acquisition basis, creating an opportunity to acquire a stable operating company, valuable real estate, specialized production capabilities, and meaningful unused capacity.

Investment Highlights

-More than 30 years of operating history
-Approximately $2.36 million in TTM revenue
-Approximately $439,000 in TTM SDE
-Gross margins exceeding 77%
-Approximately $1.7 million of owned real estate included
-Absentee ownership requiring fewer than five hours per week
-Experienced management team in place
-Approximately 50-year anchor-customer relationship
-Specialized nixtamalization production process
-Non-GMO, preservative-free product profile
-Approximately 2x to 2.5x available production capacity
-Specialized equipment and delivery assets included
-Stable demand within the foodservice industry

Growth Opportunities

A new owner could pursue growth through:
-Adding production shifts
-Expanding relationships with foodservice distributors
-Increasing sales to independent restaurants
-Developing additional regional accounts
-Introducing complementary tortilla and snack products
-Expanding geographically
-Utilizing available pricing flexibility
-Increasing sales and marketing activity

The facility and current production infrastructure provide substantial capacity for growth without the need for a major near-term expansion.

Facilities

The company operates from an owned manufacturing facility situated on approximately three acres in West Texas.

The property includes production space, specialized tortilla and chip manufacturing equipment, delivery assets, and the infrastructure required to support current operations and future growth.

The real estate is estimated to be worth approximately $1.7 million and is included in the $3.7 million asking price.