Cacique Foods, a family-owned manufacturer of Mexican-style dairy and meat products, has appointed Bank of America to explore a potential sale, according to three sources familiar with the matter.

The Irving, Texas-based company is expected to launch a sale process next year, all of the sources said.

Cacique Foods generates around USD 50m in EBITDA and will likely fetch a deal valuation of 10-12x EBITDA in the event it is sold, the second and third sources said.

All three of the sources noted that Cacique Foods’ eventual valuation may depend on the outcome of Tropical Cheese‘s ongoing sale process.

Mergermarket reported in May that Tropical Cheese, a Hispanic dairy and meat manufacturer, was in the early stages of a sale process led by Rothschild. Tropical Cheese is expected to be marketed off adjusted 2023 EBITDA of over USD 45m, as reported. The second source noted that Tropical Cheese could fetch a multiple of 11-12x EBITDA in a deal.

Boston-based hedge fund The Baupost Group acquired a minority stake in Cacique Foods in 2021.

Cacique Foods was founded in 1973 by the de Cardenas family. The company produces Mexican-style cheeses, cremas, chorizos and salsas and its products can be found in most major retail supermarkets as well as bodegas and smaller retailers.

Cacique Foods and The Baupost Group did not respond to requests for comment. Bank of America declined to comment.