The Central Valley Fund (CVF) has exited its investment in Ultra Gro Plant Food. CVF supported a management led buy-out of Ultra Gro in 2008 by investing $3.35 million in mezzanine debt and equity to assist management in financing the purchase from the company founders.
Ultra Gro is a full-service provider of custom-blended fertilizers that can be tailored to a variety of crop, soil and microclimate conditions. The company is based in Madera, CA (www.ultragroplantfood.com).
“The 2008 management buy-out gave Ultra Gro the opportunity to take full advantage of the expanded demand for fertilizer products in a strong commodity market. Thanks to continued internal and external investment in the product range, Ultra Gro has captured new market share and continues to expand its customer base domestically, and in Mexico”, according to President, Don Parreira.
The Central Valley Fund typically invests from $2 million to $10 million in subordinated debt and preferred stock instruments. Target companies will have revenues from $10 million to $100 million. The fund has offices in Davis and Fresno, CA (www.centralvalleyfund.com).
“Ultra Gro has become a market leader in specialty fertilizer in the Central Valley. The transformation of the business demonstrates our partnership with the management team and their hard work in creating a diversified business in a competitive market. We wish the business all the best in the future as it embarks on its next stage of growth,” said Ed McNulty, Partner at CVF.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-16-13