Plant-based food company Tattooed Chef entered into a deal to purchase New Mexico Food Distributors Inc. and Karsten Tortilla Factory LLC for $35 million, the company announced Monday, poising the company to expand its production capabilities and presence in the Hispanic foods market. The two companies are known collectively as Foods of New Mexico.
“We have seen tremendous growth in the Tattooed Chef brand and these two facilities will allow us to diversify our product lines and significantly increase our manufacturing capabilities our manufacturing capabilities to capitalize on the $20 billion Hispanic/Southwest Food sector and beyond,” said Sam Galletti, president and CEO of Tattooed Chef, in a statement. “We will be immediately addressing the $1 billion Frozen Mexican Food category once the transactions close. At full capacity, we believe Foods of New Mexico can contribute up to $200 million annually in revenue in the next two or three years and create significant value of all our stakeholders.”
Established in 1987, Foods of New Mexico manufactures ready-to-eat Mexican food products for retail and foodservice at a plant in Albuquerque, NM. Its portfolio includes quesadillas, burritos, and sauces. Another new facility in Karsten, NM produces tortillas. Tattoooed Chef said the manufacturing assets will enable it to offer its branded products in new categories.
“Foods of New Mexico has many of the qualities we were looking for in the next potential target: capacity, expanding product portfolio capabilities, and entering new categories,” Sarah Galletti, the brand’s “Tattooed Chef” and chief creative officer, said in the release. “We see an opportunity to introduce nostalgic innovation into the plant-based food space and we believe we can leverage Foods of New Mexico’s manufacturing capabilities to do so.”
The acquisition is expected to be completed in early May.