Bessemer Invests in Pet Flavors

Bessemer Invests in Pet Flavors

Bessemer will use Pet Flavors as a platform in the companion animal health industry and is partnering with the company's founder, Mark Pieloch, on this transaction

SOURCE: iStock Photo

Bessemer has made an investment in Pet Flavors, a producer of flavor bases and ingredient systems that are used in pet-specific pharmaceuticals and nutritional supplement products.

Pet Flavor’s palatable, aromatic and stable flavor bases include artificial powdered beef flavor; natural chicken powdered flavor, sweet apple and molasses, natural liver powdered flavor, and a newly developed hypoallergenic and vegan base flavor. The company’s products – sold in the United States, Canada, Europe, India, Brazil, and Mexico – use United States-sourced ingredients and are preservative-free, grain-free, and contain no artificial coloring.

The company’s flavor bases are tested by independent United States-based FDA/USDA approved laboratories to ensure that physical, chemical and microbiological specifications are met. Pet Flavors was founded in 1990 and operates a USDA-inspected and approved facility in Melbourne, Florida.

Bessemer intends to establish Pet Flavors as a platform investment in the companion animal health industry and is partnering with the company’s founder, Mark Pieloch, on this transaction. Post-closing, Mr. Pieloch will remain at the company as its president.

“We are very pleased to be partnering with Bessemer as we move toward the next stage in our growth,” said Mr. Pieloch. “The Bessemer team is aligned with our values, and we believe their long-term and flexible approach will help us expand into additional products while continuing to strengthen our alliances with pharmaceutical and nutraceutical companies all over the world.”

“Pet parents want the experience of giving their pets medication to be as seamless as possible, which makes flavoring a key component of that relationship,” said Andrew Mendelsohn, a principal at Bessemer. “Pet Flavors’ commitment to quality and execution as well as its strong relationships with top animal health and supplement companies have helped it establish a reputation as the leading manufacturer of flavor bases. We are excited to team with Mark and the company to build on their 30-year history of market leadership, innovation and partnership with the leading global animal health companies.”

New York City-based Bessemer invests from $50 million to $150 million of equity in companies that have from $10 million to $50 million of EBITDA and enterprise values from $75 million to $500 million. Sectors of interest include industrials, business services, and consumer products and services.

Bessemer was formed in 2018 and is an investment vehicle of Bessemer Securities, a multi-family office led by the Phipps family whose wealth originated from the partnership between Henry Phipps and Andrew Carnegie, and the sale of Carnegie Steel to JP Morgan in 1901. Bessemer Securities is named after the Bessemer steel-making process – developed by Sir Henry Bessemer in 1855 and used by Carnegie Steel – that allowed for the low cost and efficient production of steel from iron.

Lincoln International was the financial advisor to Bessemer and Capitalmind advised Pet Flavors. BMO is the lead financial institution on the debt financing for the transaction.

© 2022 Private Equity Professional | January 4, 2022

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