Dairy Farmers of America (DFA) has acquired W&W Dairy, a US manufacturer of Hispanic cheese products.
The acquisition includes the W&W Dairy business, its licenced brands, and a manufacturing facility, according to a statement from the US dairy cooperative.
Located in Monroe, Wisconsin, the factory produces various Hispanic cheeses such as queso fresco, cotija, queso blanco and quesadilla.
DFA did not disclose the financial terms of the transaction.
The farmer-owned co-op said the addition of the Monroe facility allows the business to “create operational synergies” with its existing plant in Houston, Texas, which produces the La Vaquita dairy brand.
DFA added La Vaquita, known for its Hispanic cheeses, cremas, and drinkable yogurts, will be “strategically supported” by the new facility, benefiting from the enhanced production capacity and market reach.
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By GlobalDataKen Orf, president of the cheese, taste, and flavours division at DFA, said: “The growth trajectory for the Hispanic cheese market is more than three times that of the cheese category.
“This strategic acquisition adds a second plant in our network focused solely on producing Hispanic cheese, moving DFA into a stronger position for growth with this important dairy category for both our owned brands and our customers’ brands.”
Earlier this year, DFA said it also acquired Winona Foods’ Lineville facility in Green Bay, Wisconsin, which produces processed cheese products, cheese sauces, cheese spreads, and non-dairy sauces and condiments.
“DFA is dedicated to bringing value to our farmer-owners through strategic investments, and these acquisitions will help enhance DFA’s cheese capabilities in Hispanic and other consumer cheese offerings,” Orf said.
Despite the change in ownership, operations at the Monroe facility will continue without disruption, according to DFA, which produces the Kemps, Meadow Gold and Friendly’s brands.
The existing plant management team will oversee day-to-day operations, and employment with DFA has been offered to all 97 employees, it added.
Both the Monroe and Green Bay plants will be integrated into DFA’s cheese, taste, and flavours division.
In the past few months, there have been a number of transactions in Mexican and Hispanic cuisine within the US.
Last month, Vilore Foods, a US-based importer and distributor, acquired Tia Lupita Foods, a company known for distributing Hispanic brands such as La Costeña, Jumex, and Totis.
In April, the private-equity firm Apex Capital purchased a majority stake in Juanita’s Foods, a California company specialising in Mexican-style food products.
Perhaps the most significant transaction occurred last October, when PepsiCo acquired Siete Foods, a Mexican-American snack producer, for $1.2bn.
