HGGC has completed a growth equity investment in MyWebGrocer, a provider of digital marketing services to grocery stores and consumer packaged goods companies. The Stripes Group, a minority investor in MyWebGrocer since August 2009, sold its stake in the company as a part of this transaction.
“We have always worked with investors who bring more than capital—people who are true partners that value what we have built and want to work alongside us to accelerate our growth and realize the tremendous potential of MyWebGrocer,” said Rich Tarrant, a Founder and the CEO of MyWebGrocer. “HGGC’s unique insights, proven track record with technology‐enabled services businesses, and experience with founder‐owned businesses make them the clear choice.”
MyWebGrocer provides a suite of eCommerce and eMarketing services to the grocery and consumer packaged goods industries. As part of its platform, MyWebGrocer operates the nation’s largest grocery ad network with over 10 million monthly unique visitors. MyWebGrocer provides a software platform that allows consumers to plan grocery visits online, including making shopping lists, downloading coupons, and viewing digital circulars that outline promotional items. MyWebGrocer’s software also allows grocery stores to support online transactions for in‐store pick‐up or home delivery. For consumer packaged goods (CPG) companies, MyWebGrocer provides the ability to run digital marketing campaigns on grocery websites, and helps them manage digital display and search advertising campaigns through proprietary consumer data. The company’s customers include more than 140 grocery brands, including some of the largest retailers, such as Kroger, Shoprite, and Albertsons, as well as more than 200 consumer packaged goods brands including McCormick, Kelloggs, Unilever, Nestle and P&G. MyWebGrocer, which employs 180 people, is profitable and saw 2012 revenues increase nearly 60 percent over 2011. The company is headquartered in Winooski, VT (www.mywebgrocer.com).
“Changing consumer behavior is pressuring grocers and CPGs to adopt digital solutions, and MyWebGrocer is the clear vertical market leader,” said Hudson Smith, Principal at HGGC. “With new eCommerce‐focused entrants seeking to take share from traditional grocers, we believe that grocers will increasingly look to MyWebGrocer to provide the technology platform that enables consumers to plan and shop online, as well as enhance the in‐store experience with mobile and social offerings.”
HGGC (formerly Huntsman Gay Global Capital) makes leveraged buyout, recapitalizations and growth equity investments in middle market companies. The firm invests from $25 million to $100 million in equity per transaction in companies that have revenues of $100 million or more, enterprise values of $100 million to $500 million, and EBITDA of $15 million or more. The firm’s sweet spot is companies with $20 million to $40 million of EBITDA. HGGC is based in Palo Alto (www.hggc.com).
“This investment is further proof of HGGC’s unique ability to partner with strong management teams and founders who want to continue to invest in and grow their businesses, as well as our expertise in technology‐enabled services businesses,” said Richard Lawson, Co‐Founder and Managing Partner at HGGC. “We look forward to supporting Rich Tarrant, his brothers, Jerry and Brian who co‐founded the business, and the MyWebGrocer management team to continue to build upon the foundation of success.”
Stripes Group is a growth equity firm that makes minority and majority equity investments of $10 million to $100 million in B2B/B2C Internet, SaaS, software, healthcare IT, and branded consumer products businesses. The firm is based in New York (www.stripesgroup.com).
The Jordan, Edmiston Group (www.jegi.com), a New York-based investment bank that specializes in the media, information, marketing services and technology industries, served as exclusive financial advisor to MyWebGrocer and the Stripes Group.
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-12-13