Targeted PetCare, a portfolio company (formerly known as Pestell Pet Products) of Wind Point Partners, has acquired sWheat Scoop from Farmers Union Industries.
sWheat is a manufacturer of branded, 100% wheat-based, biodegradable cat litter products that are sold through both retailers and distributors.
The company, led by General Manager Bob Larson, was founded in 1994 and is headquartered in Detroit Lakes, Minnesota.
In June 2018, Wind Point acquired Pestell Group in partnership with consumer packaged goods executive Matt Miller, from Don Pestell who founded the company in 1972. At that time, Pestell Group operated through two divisions – Pestell Minerals and Ingredients (PMI), a distributor of animal feed minerals and ingredients for a variety of livestock; and Pestell Pet Products (PET), a manufacturer of branded and private label cat litter and small animal bedding products. Both PMI and PET operated out of shared warehousing and manufacturing space near Toronto in New Hamburg, Ontario.
In August 2019, Wind Point split the operations of Pestell Group into two standalone entities, Pestell Nutrition, previously PMI, and Targeted PetCare, previously PET.
Targeted PetCare (TPC) is today a manufacturer of animal litter and bedding products, and co-manufacturer of dental pet treats, that are sold through the pet specialty, mass merchant, grocery, and club store channels. TPC is led by CEO Matt Miller and is headquartered in New Hamburg, Ontario and operates four manufacturing facilities across the US and Canada.
The buy of sWheat is complementary to TPC’s animal litter business, which manufactures branded and private label traditional clay-based litter, as well as alternative, paper-based litter. TPC will now be able to offer its customers wheat-based cat litter in addition to products from the broader TPC portfolio.
“sWheat is a perfect fit with TPC and the acquisition helps us continue our strategic vision of building a diversified pet products platform,” said Paul Peterson, a Wind Point managing director. “We believe the combination with TPC will serve as a catalyst for continued growth.”
The buy of sWheat is TPC’s fourth add-on acquisition under Wind Point’s ownership and follows the acquisitions of VersaPet, a Toronto-based manufacturer of private label and branded cat litter products (acquired in June 2019); Targeted Pet Treats, a Pennsylvania-based co-manufacturer of dental treats and chews for pets (acquired in December 2018); and BPV Environmental, a Michigan-based manufacturer of paper-based animal litter and small animal bedding (acquired in October 2018).
Chicago-based 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. Wind Point is currently investing out of Wind Point Partners IX LP which began fundraising in 2019.
Farmers Union Industries, the seller of sWheat, is a family of companies including Performance Pet Products (pet food); Redwood Farms Meat Processors (pork processing); Midwest Grease (restaurant grease recycling); Central Bi-Products (animal rendering); Northland Choice (poultry-based pet food); Artex (maker of fertilizer spreaders); and sWheat (now sold to Targeted PetCare). Farmers Union, with approximately 600 employees, is led by CEO Dan Hildebrandt and is headquartered 115 miles west of Minneapolis in Redwood Falls, Minnesota.
Debt financing for the buy of sWheat was led by Antares Capital and Maranon Capital.
© 2019 Private Equity Professional | December 16, 2019
