Valley Milk a California dairy ingredient producer, has formed Francisco Foods, a new joint venture that has acquired substantially all assets of Rizo-Lopez Foods out of bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of California.
The deal preserves the Tío Francisco brand and keeps the Modesto, California-based operation’s workforce and customer relationships intact.
Francisco Foods is majority-owned by Valley Milk, with the Rizo family retaining an ownership stake through Rilosa LLC, an entity controlled by Edwin and Ivan Rizo, founders of Rizo-Lopez Foods.
While Rizo-Lopez Foods as a corporate entity will cease to exist, the business continues under the new structure.
“This partnership is a natural extension of Valley Milk’s commitment to the Central Valley community and the dairy industry,” said Damien Caton, CEO of Valley Milk.
“We are proud to work alongside the Rizo family to bring quality Hispanic-style dairy products back to consumers who have long valued this brand, and we are fully committed to building something stronger and more resilient for the long run.”
The Tío Francisco brand has been distributed nationwide for more than 35 years. Francisco Foods will continue producing and serving the full product line under the Tío Francisco name.
For grocery retailers that carried Rizo-Lopez Foods products, the transaction signals continuity. The brand, workforce and customer base are carrying forward under new ownership with additional operational support from Valley Milk, which was founded by multi-generational Central Valley dairy families, nutritionists and veterinarians.
Francisco Foods was formed specifically to acquire and operate the dairy production assets formerly held by Rizo-Lopez Foods.
[RELATED: Report: Grocery Price Growth Easing As Egg Prices Drive Breakfast Costs Down]