Azteca was a Mexican food company based in Chicago that manufactured and marketed flour tortillas, corn tortillas, and taco shells. General Mills acquired this company to take advantage of the growing interest in branded ethnic food products in the U.S., and invested heavily to modernize its plant and establish its brand franchise. Unfortunately Azteca’s promise never materialized, as this money-losing business failed to meet its financial targets. Management, who assumed business shutdown and write-off was likely, asked Weinstein to stop the hemorrhaging.

After conducting preliminary research, coming up with viable exit strategies, and assessing the true value of Azteca, Weinstein persuaded management that Azteca could be sold as a going-concern, instead of being closed. Weinstein’s plan required:

• The business to be restructured.
• Costs rationalized.
• Financial projections adjusted to reflect future expected performance.

Weinstein developed an Offering Memorandum, and then identified, gave presentations to, and led plant tours for potential buyers.

Weinstein’s divestiture plan saved General Mills $10 million. The divestiture also improved corporate profitability by exiting an under performing, unattractive, non-strategic business.