US-based investment management firm The Baupost Group has agreed to acquire a minor stake in Hispanic food company Cacique.

Baupost invested in the company through a funding round.

Baupost private corporate investments head Tom Blumenthal said: “The de Cardenas family has built an exceptional business committed to producing the highest-quality authentic products. We couldn’t be more excited to be partnering with them and the Cacique management team to continue the company’s leadership and growth across the Hispanic foods category.”

Financial details of the deal have not been disclosed.

Cacique is an independently owned food company, which is engaged in the production of Mexican-style cheeses, cremas, and chorizos in the US.

The proceeds will be used by the company to expand its production capacity and increase research and development (R&D) activities.

Cacique said that this investment will support its long-term growth strategy and help it meet the growing demand for its products.

According to Cacique, the demand for Hispanic food products is increasing significantly in the US market and consumers are seeking authentic ingredients and high-quality products in this category.

Cacique CEO Gil de Cardenas said: “For more than 45 years, we have been honored to be invited to the tables of our consumers.

“This investment by Baupost will fuel the next chapter of our growth, affording us the opportunity to bring our portfolio of authentic, high-quality Hispanic foods rich in heritage and tradition to even more tables across the country. We are very excited to have Baupost as our partner.”

For this deal, Bank of America served as the exclusive financial adviser to Cacique and De Cardenas Law Group served as legal adviser.

In addition, Ropes & Gray served as legal adviser to Baupost.