Wind Point Partners has sold its portfolio company Petmate to Olympus Partners.
Petmate is a designer and manufacturer of a range of pet products totaling more than 4,000 SKU’s. Products include hard goods such as carriers, feeding and watering devices, shelters, and wire kennels; dog and cat toys; and soft goods such as bedding, collars and leashes. Petmate is based in Arlington, TX (www.petmate.com).
In January 2011, Westar Capital sold Petmate to Wind Point in partnership with Joe Messner who became the company’s CEO. Wind Point had previously partnered with Mr. Messner in 1999 to acquire Bushnell Performance Optics, which it successfully divested in 2007. In June 2014, Mr. Messner became the Chairman of the company and Alice Tillett was hired as the company’s new CEO. Prior to Petmate, she had a twelve year career at Pacific Cycle, a former Wind Point portfolio company, most recently serving as President. Prior to Pacific Cycle, she was the Vice President of Sales at Huffy Bicycle Co.
During the course Wind Point’s ownership of Petmate the firm completed 5 add-on acquisitions: Muchkin’s Fat Cat and Bamboo product lines (2011); Kennel-Aire (2011); WetNoz (2012); JW Pet Company (2012); and Canine Hardware (2012).
“Petmate is another example of how Wind Point’s strategy of partnering with top caliber CEOs such as Alice can transform a business,” said Paul Peterson, a Managing Director at Wind Point. “Alice and her team executed on the value creation plan by building Petmate’s category management and product innovation capabilities, improving productivity, and completing add-on acquisitions.”
Wind Point invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).
“We have created significant value over the past few years by collaborating with customers on product innovation and acting as a one-stop solution to drive organic growth,” said Ms. Tillett. “As a worldwide leader of solutions in the pet industry and enabled by our world-class manufacturing facility in Arlington, Texas, we are committed to providing fun, trusted, quality products to enhance the lives of pets and families. Wind Point has been supportive to me and the entire Petmate organization, and we are grateful for their partnership throughout.”
“Petmate is a highly attractive platform in the pet industry that is well positioned to capitalize on the industry’s growth through multiple sales channels,” said Paul Rubin, an Olympus Partner. The firm has stated that they will continue to support the company’s history of growth through product innovation as well as through strategic acquisitions. The Olympus investment team included Mr. Rubin, Dave Cardenas, Matt Boyd, and Bohdan Tyshynsky.
Olympus, with $5.5 billion of total capital under management, provides equity capital for middle market management buyouts and for companies needing capital for expansion. Sectors of interest include restaurants, consumer products, healthcare services, financial services and business services. The firm was founded in 1988 and is based in Stamford, CT (www.olympuspartners.com).
Reed Smith (www.reedsmith.com) was the legal advisor to Wind Point and Petmate. The Chicago-based Reed Smith deal team was led by Michael Lee and included Morley Fortier, Bob McCann and Amanda Mueller.
Harris Williams & Co. (www.harriswilliams.com) was the financial advisor to Petmate.
© 2017 Private Equity Professional | May 24, 2017
