AUA Private Equity and Avance Investment Management Form Partnership to Make Investment in Tropical Cheese

NEW YORK, MIAMI and WEST PALM BEACH, Fla., Dec. 16, 2024 — AUA Private Equity Partners, LLC (“AUA”) and Avance Investment Management (“Avance”), two Hispanic-led investment firms focused on partnering with family and founder-owned businesses, today jointly announced a significant investment in Tropical Cheese Industries, LLC (“Tropical Cheese” or the “Company”), a high-quality Hispanic food company in the U.S. The founding Mendez family and the management team of Tropical Cheese will retain a significant minority interest in the Company. Terms of the transaction were not disclosed.

Founded in 1982 by Rafael Mendez, Tropical Cheese is a family-run premium brand for an assortment of Hispanic cheese, meat and other food products. As the market leader in the Hispanic cheese category on the East Coast, Tropical Cheese has established itself as a trusted brand among Hispanic households, driving differentiated value to its customers through its authentic flavors, superior product quality and direct-store-delivery and logistics.

Tropical Cheese Founder Rafael Mendez commented, “My family and I were looking for a partner that could not only support Tropical Cheese’s future growth but, importantly, preserve our strong brand and family legacy. AUA and Avance both bring significant investing experience in food companies, family businesses and the Hispanic market, and we look forward to benefitting from their expertise in our next chapter of growth.”

Andy Unanue, Managing Partner of AUA, stated, “The Mendez family founded Tropical Cheese over 42 years ago, and we are honored to be trusted to build on their legacy. The Company has a proven track record of sustainable growth by increasing same store sales and the number of doors it serves, and we look forward to helping the Company expand its footprint and continue to execute on its success. Leveraging our deep network in the food industry and the Hispanic community, we will focus on driving product penetration, expanding distribution points with additional centers and building lasting customer relationships.”

Luis Zaldivar, Managing Partner of Avance, stated, “The investment in Tropical Cheese is a natural fit for us, and came together as a result of our long-standing relationships with the Mendez family and AUA. Our cultural ties are further solidified by our deep experience with Hispanic foods and family businesses. We understand and appreciate the value of the Tropical Cheese brand, and the significant growth potential within its categories. We look forward to working with the Mendez family, AUA and the Tropical Cheese management team as the Company continues to expand nationally, including the pursuit of complementary M&A opportunities.”

About Tropical Cheese

Tropical Cheese is a family-run premium brand for an assortment of Hispanic cheese, meat and other food products. As the market leader in the Hispanic cheese category on the East Coast, Tropical Cheese has established itself as a trusted brand among Hispanic households, driving differentiated value to its customers through its authentic flavors, superior product quality and direct-store-delivery and logistics.

About AUA Private Equity Partners

AUA Private Equity Partners is an operationally focused, lower middle-market investment firm providing strategic capital to companies in the consumer products and services sectors with a particular focus on family-owned businesses or companies benefiting from the growth of the U.S. Hispanic population. AUA Private Equity invests in companies in their core sectors that generate in excess of $10 million in EBITDA. For more information on AUA Private Equity Partners, please visit www.auaequity.com.

About Avance Investment Management

Avance is a private equity firm with a passion for building great businesses in partnership with talented founders and management teams. Avance focuses primarily on thematic investments within the Services, Technology and Consumer areas in the U.S., seeking attractive opportunities with catalysts for growth and fragmented spaces with consolidation opportunities. Avance’s team has a long history of partnering with founder-owned businesses, industry executives, and management teams and aims to add value to each investment through the application of its STAGE™ value creation framework. Avance has offices in New York and Miami. For more information, please visit www.avanceinv.com.