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TSG Enters Agreement to Sell Don Miguel


TSG Consumer Partners LLC enters agreement to sell Don Miguel Mexican Foods, a portfolio of great tasting, authentically spiced premium products, to Megamex Foods.

SAN FRANCISCO, CA, September 7, 2010 – TSG Consumer Partners LLC ("TSG"), a private equity firm and leading investor in branded consumer companies, announced that it has entered into a definitive agreement to sell Don Miguel Mexican Foods Corp. to MegaMex Foods, LLC, a joint venture between Hormel Foods Corporation (NYSE: HRL) and Herdez Del Fuerte, S.A. de C.V. The acquisition is expected to close in October 2010, subject to customary closing conditions, including regulatory approval.

The Don Miguel business, founded over 100 years ago, was acquired by Steve Charton in 1990. TSG Consumer Partners invested in the company in October 2002. Don Miguel has evolved into one of the leading providers of branded, frozen and fresh Mexican flavored appetizers, snacks and handheld items.

"We feel very fortunate to have had the opportunity to partner with Steve Charton and the members of the Don Miguel management team. We have built a differentiated brand based on a portfolio of great tasting, authentically-spiced, premium products, and view MegaMex as the ideal steward for continuing to grow the business going forward," said James L. O’Hara, a Managing Director and Partner at TSG.

Don Miguel represents another significant success for TSG, following a series of exceptional realized investments that more recently included Smashbox Cosmetics, PureOlogy, Smart Balance and VitaminWater.

"TSG Consumer has been a tremendous partner over the past 7+ years. Besides providing substantial consumer sector expertise, TSG was enthusiastic about continuing to make the substantial investments in operations, new product development and sales and marketing activities that were critical to our accelerated growth," said Don Miguel's Chairman, Steve Charton.

The purchase price was not disclosed.

The seller was advised by Scott LaRue and Matthew Roghair of Piper Jaffray & Co. and Eva Davis of Kirkland & Ellis LLP.


TSG Consumer Partners, LLC is a leading investment firm with
approximately $5 billion of assets under management, focused
exclusively on the branded consumer sector. Since its founding
in 1987, TSG has been an active investor in the food, beverage,
restaurant, beauty, personal care, household and apparel & accessories,
and e-commerce sectors. Representative past and present partner
companies include Duckhorn Wine Company, vitaminwater, thinkThin,
popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness,
REVOLVE, PAIGE, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. Cosmetics
and IT Cosmetics.


Meghan Gavigan / Dan Goldstein
Sard Verbinnen & Co

Meghan Gavigan - 212.687.8080

Dan Goldstein - 310.201.2040