By Abigail Summerville
NEW YORK (Reuters) - The family behind Tropical Cheese Industries is exploring a sale of the Hispanic dairy products maker that could value it at over $500 million, according to people familiar with the matter.
Tropical Cheese, based in Perth Amboy, New Jersey, is working with investment bank Rothschild and Co to solicit acquisition offers, the sources said, requesting anonymity as the matter is confidential.
Tropical Cheese and Rothschild declined to comment.
The dairy products distributor expects to generate nearly $50 million of earnings before interest, taxes, depreciation and amortization in 2024, the sources said.
Tropical Cheese was launched in 1982 by Hispanic businessman Rafael Mendez who moved from Cuba to the U.S. when he was 17 years old and eventually settled in Perth Amboy where he worked as a milk delivery man.
While Mendez started out by catering to Latino and Hispanic households and communities in New Jersey, Tropical Cheese has since expanded into most U.S. states, as well as regions including the Caribbean, Central and South America, and Europe.
The company also sells meats, tortillas, and beverages and its products are sold through convenience stores and food retailers in the regions where it operates.
Another Hispanic-owned food company Badia Spices is currently exploring a sale, Reuters reported in June.