Align Capital Partners has acquired Custom Veterinary Services (CVS), a formulator and contract manufacturer of animal health products for dogs, cats, and horses.
The services of CVS include product identification, formulation development, packaging, and production. Within production, the company’s capabilities include liquids, powders, soft chews, and tablets for nutritional supplements, dermatological products, and grooming products.
Many of the company’s customers are animal health organizations, veterinary pharmaceutical companies, and e-commerce-focused pet care and nutrition brands.
In 2019, CVS received the Supplier of the Year award from the National Animal Supplement Council. CVS was founded by Ruben Martinez in 2005 and operates an FDA-registered facility near Miami in Gladeview, Florida.
At the closing of this acquisition, Worth Turner has been named the new CEO of CVS. “Ruben and his family have built CVS into a market-leading contract manufacturing organization (CMO) with innovative R&D capabilities. I’m excited for the opportunity to partner with the entire CVS team to create the best-in-class CMO for the animal health sector,” said Mr. Turner.
“Our customers are growing rapidly, and we sought a partner to help us expand and further meet our customers’ needs,” said Mr. Martinez. “ACP and Worth have a successful track record of helping companies like CVS grow and share our vision of being the best contract manufacturing partner for the animal health industry.”
Prior to joining CVS, Mr. Turner was the president of Colorado Quality Products, a Denver-based contract manufacturer of hair care, skincare, and other personal care products. Colorado Quality Products was acquired by Elevation Labs, a portfolio company of Clearview Capital, in July 2018. Mr. Turner led Colorado Quality Products from July 2014 through September 2020.
“We’re enthusiastic about the combined partnership of Ruben, Worth, and ACP,” said Rob Langley, a managing partner at ACP. “CVS is at an inflection point where additional capital and growth-related expertise will help drive the leadership team’s goal of becoming the best provider in the sector. We are thrilled to partner with the team and Worth in pursuit of this goal.”
The buy of CVS is ACP’s second investment in the animal health sector and follows its 2020 acquisition of VetEvolve, a Richmond, Virginia-based owner and operator of veterinary clinics primarily on the East Coast and Mid-Atlantic regions.
ACP makes control investments in companies that have from $3 million to $10 million of EBITDA. Sectors of interest include business services, technology, specialty manufacturing, distribution, and healthcare. In addition to Mr. Langley, the ACP transaction team for the buy of CVS included Operating Partner Bill White, Principal Jack Parks, Vice President Kurt Smentek, and Associate Aaron Lewis.
ACP closed its second fund, Align Capital Partners Fund II LP, at its hard cap of $450 million in February 2020. Align was founded in 2016 by managing partners Steve Dyke, Robert Langley, and Chris Jones – all formerly of The Riverside Company – and has offices in Cleveland and Dallas.
CVS was advised on the transaction by BellMark Partners, a Boston and Cleveland-based investment bank.
© 2021 Private Equity Professional | April 1, 2021