Goya, one of the iconic names in Latin American delicacies, has employed funding financial institution Goldman Sachs to weigh choices that would embody a sale of the 83-year-old firm, individuals accustomed to the matter inform CNBC.
The corporate has roughly $250 million in earnings earlier than curiosity, taxes, depreciation, and amortization and will fetch approximately $3 billion in a sale, a number of the people mentioned.
Based by Spanish immigrants, Prudencio Unanue and Carolina Casal in 1936, Goya has lengthy stayed a family firm. Its possession, although, has splintered as its heirs have multiplied. That divided management has, at occasions, led to disputes over the corporate’s future. In 2004, disagreements spilled into court, as some heirs pushed to oust Prudencio’s son, Joseph, out of the corporate. Joseph handed away in 2013.
A sale may deal with the fragmentation of its possession. Relying on valuation, some descendants could decide to retain their stake within the occasion of a sale, or the household might resolve in opposition to a deal all collectively, one of many individuals stated.
Prudencio and Carolina’s grandson, Robert Unanue, has been chief executive of Goya since 2004.
In a press release delivered to CNBC, firm CEO Robert Unanue stated, “The way forward for Goya is to proceed to construct our household legacy and to develop the model worldwide. For these causes and lots of extras, Goya isn’t on the market. On the contrary, over time, we have now made acquisitions of different firms as a way to develop the footprint of Goya Foods, and we proceed to take action. We periodically consider the corporate for property planning and different functions within the regular course of business.”
Nonetheless, Goldman Sachs has despatched out monetary supplies to personal fairness companies, which corporations don’t usually do for property planning functions, say folks acquainted. The funding financial institution has additionally reached out to potential company acquirers, say two individuals acquainted. The corporate has set a bidding deadline of early June for preliminary bids, a few of the folks mentioned.
Goya might entice the attention of personal fairness companies or plenty of heavy meals corporations together with J.M. Smucker, B&G Foods, Conagra, Unilever, Kraft Heinz, and Campbell Soup, the folks mentioned.
The people requested anonymity as a result of the data is confidential. Goldman declined to remark.