Benford Capital Partners has sold its portfolio company K&H Pet Products to publicly traded Central Garden & Pet Company. K&H was acquired by Benford, Coppermine Capital and management in 2007.
K&H produces heated and non-heated pet products including beds, perches, pads, as wells as other pet related products such as pet carriers and crates and filtered drinking bowls. The company’s products are sold across several markets including dog and cat, small animal, and farm and ranch. K&H is led by its President James Koskey and is headquartered in Colorado Springs, CO (www.khmfg.com) (www.khpet.com).
During Benford’s term of ownership revenues increased more than six-fold – all on an organic basis – through entering adjacent pet product categories; building a dedicated sales team that accelerated new customer acquisition; and growing K&H’s consumer brand awareness through a new e-commerce channel.
“The K&H investment is a good case study in our patient, long-term partnership approach as investors and board members,” said Edward Benford, Managing Director. “We acquired the business in May 2007 in partnership with President Jim Koskey and helped support and develop the growth plan over the past 10 years. The result was a highly successful outcome for the management team, Benford Capital and our investors.”
Benford Capital Partners invests in lower middle market companies that have revenues of at least $3 million and EBITDA of at least $1 million. Sectors of interest include niche manufacturers, unique service companies, and specialty distributors. The firm was founded in 2004 by Edward Benford and is based in Chicago (www.benfordcapital.com).
Coppermine Capital invests in companies with annual revenues between $5 million and $25 million and EBITDA greater than $1 million. Sectors of interest include home health care, niche manufacturing, and services. The firm was founded in 2002 and is based in Concord, MA (www.copperminecapital.com).
“I truly enjoyed building K&H over the last ten years under Benford Capital’s and Coppermine’s ownership. They provided consistent, straightforward advice and rolled up their sleeves in a “hands-on” way when it made sense,” said Mr. Koskey.
Central Garden & Pet Company (NASDAQ: CENT) is a marketer and producer of branded products for the lawn & garden and pet supplies markets. The company is based in Walnut Creek, CA and has approximately $1.7 billion in annual revenues (www.central.com).
K&H was advised by investment banking firm MHT Partners (www.mhtpartners.com).
© 2017 Private Equity Professional | May 5, 2017
