Pestell Group, a portfolio company of Wind Point Partners, has acquired VersaPet, a manufacturer of private label and branded cat litter products. Wind Point acquired Pestell in partnership with consumer packaged goods executive Matt Miller in June 2018.
Pestell operates through two business units: Pestell Minerals and Ingredients (PMI), a distributor of animal feed minerals and ingredients for a variety of livestock; and Pestell Pet Products (PET), a full-line manufacturer of branded and private label cat litter and small animal bedding products. Both PMI and PET operate out of shared warehousing and manufacturing space near Toronto in New Hamburg, ON. Pestell also maintains 15 third-party warehouses across North America for its animal feed products business (www.pestell.com).
The buy of VersaPet will increase PET’s overall capacity for cat litter production and will allow VersaPet to sell products from the broader PET portfolio, including paper-based animal litter, animal bedding, pet treats, and dental chews. VersaPet, led by CEO Elliott Wahle, was founded in 2009 and is headquartered in Toronto (www.versapet.com).
“VersaPet has achieved substantial growth, and we believe that the combination with Pestell will serve as a catalyst for even greater growth as the two businesses leverage their respective customer bases,” said Paul Peterson, a managing director with Wind Point.
The buy of VersaPet is the third add-on acquisition for Pestell under Wind Point ownership. The two earlier acquisitions were Targeted Pet Treats (www.targetedpettreats.com), a Warren, PA-based contract manufacturer of dental treats and chews for pets, in December 2018; and BPV Environmental (www.bpvenvironmental.com), a Byron Center, MI-based maker of paper-based animal litter and small animal bedding, in September 2018.
Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII LP, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and is the largest fund closing in Wind Point’s history. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).
Antares Capital, BMO Sponsor Finance and PennantPark led the debt financing for the transaction. Kirkland & Ellis served as legal counsel to Pestell.
© 2019 Private Equity Professional | June 28, 2019
