Arbor Investments announced today that it has completed the sale of its Fund I portfolio company Truco Enterprises to Insignia Capital Group. Terms of the sale were not disclosed.
Founded in 1991 by David Silver and Roy Truitt, Truco is a leading developer and marketer of tortilla chips, salsa and queso under the On The Border® brand. Arbor acquired a controlling interest in Truco in 2004 and partnered with Mr. Silver to accelerate the national expansion of the On the Border® retail product line. During Arbor’s ownership, the Company quadrupled in size and grew to become one of the fastest growing snack food companies in the U.S.
“Our partnership with Truco has been rewarding and extraordinarily successful,” said Joseph Campolo, Arbor’s President and Co-Founder. “With this sale, we will realize a 6.7x return on our investment.” Further reflecting on the investment, Mr. Campolo commented, “Dave Silver, one of the original members of the founding group of the Dockers® Division, is one of the finest visionary entrepreneurs and team builders we have ever been in business with. Under his leadership, the Truco management team successfully built the Company into a top provider of Southwestern Mexican style snacks and drink mixes. It is gratifying to have been part of Truco’s history and we look forward to watching the Company’s continued growth and success under Insignia’s ownership.”
This sale also brings about the conclusion of Arbor Fund I. Raised in 1999, Arbor Fund I has generated a 4.1x return multiple of capital invested, net of carried interest, management fees and expenses. “We are thrilled with the performance of Arbor Fund I and the returns we have been able to generate for our investors,” said Mr. Campolo.