Paine & Partners has entered into an agreement to acquire The Global ID Group, a provider of food safety and food quality testing and accreditation services, from Inverness Graham Investments which acquired the company in November 2013 from LFE Capital.
Global ID Group provides food safety and food quality services including testing, inspection, certification, and consulting. The company has three operating groups: Genetic ID, CERT ID, and FoodChain ID.
- Genetic ID is an ISO-accredited testing laboratory that provides testing services for GMO, pathogen, gluten, animal speciation and food authenticity.
- CERT ID administers Global Food Safety Initiative (GFSI) benchmarked food safety and food quality certifications including SQF, BRC, GlobalG.A.P. and ISO 22000. According to Global ID, the company’s Non-GMO certification is the most widely recognized global standard for certifying non-GMO food production operations in the world.
- FoodChain ID provides technical services in non-GMO verification, non-GMO ingredient supply chain, food label review and regulatory compliance. FoodChain ID has verified more than 95 percent of the Non-GMO Project Verified market in North America—over 35,000 products representing thousands of brands, manufacturers, processors, growers, distributors, packers, and exporters.
Global ID Group is headquartered in Fairfield, IA with additional locations in Europe and South America. The company has more than 15,000 clients in over 100 countries. Ken Ross, Chief Executive Officer of Global ID, and the rest of the company’s senior management will continue to lead Global ID’s operations (www.global-id-group.com).
“We have seen the increasing focus on food safety at several of our portfolio companies firsthand, which led to our team strategically developing a deep understanding of the food safety and testing sector. As one of the largest food and agribusiness focused private equity firms, we intend to be a strong, value-added partner to Global ID. Given rising consumer awareness, the globalization of the food chain and the increasing complexity of the regulatory environment, we see strong tail winds that will support Global ID’s growth as an industry leader,” said Angelos Dassios, a Partner of Paine & Partners. “We are enthusiastic about partnering with the Global ID management team to achieve their organic growth and acquisition ambitions, and look forward to capturing the opportunities that lay ahead.”
Paine & Partners provides equity for management buyouts, going private transactions, and company expansion and growth programs. Sectors of interest include the food and agribusiness industries. The firm is currently investing through its $893 million Paine & Partners Fund IV. Paine & Partners was founded in 2006 and has offices in New York, Chicago and San Mateo, CA (www.painepartners.com).
Inverness Graham, the seller of Global ID, manages $500 million in capital commitments and was formed by senior executives of the Graham Group, an industrial and investment concern with interests in plastics, packaging, recycling, building products and outsourced manufacturing. Inverness Graham is based near Philadelphia in Newtown Square, PA (www.invernessgraham.com).
Inverness Graham acquired Global ID in November 2013 after a search in the food safety and testing market with industry expert, David Acheson. Mr. Acheson is the former Chief Medical Officer at the FDA Center for Food Safety and Applied Nutrition.
“Our investment thesis was predicated on continued strong market growth driven by increasing regulatory requirements, rapidly evolving consumer preferences for knowledge and safe food, and growing international trade within an increasingly complex global food supply chain,” said Trey Sykes, Managing Principal of Inverness Graham. “In partnership with management, we were able to successfully execute our strategic vision by optimizing operations, adding new products, enhancing the management team and expanding the technology and software functionality, all of which led to nearly doubling sales and tripling EBITDA over our three year hold.”
Houlihan Lokey (www.hl.com) advised Inverness Graham on the sale.
© 2016 Private Equity Professional • 9-29-16
