Granite Creek Capital Partners has acquired Global Animal Products (GAP), a manufacturer of feed additives for livestock.
GAP specializes in producing and distributing complex trace minerals for livestock, with a particular focus on liquid applications. Among its product offerings is ZinMet liquid zinc methionine, a supplement designed to enhance animal health and performance. The company serves beef, dairy, and poultry producers seeking to improve livestock nutritional profiles. Led by CEO Ben Tarr, GAP was founded in 1995 and is headquartered in Amarillo, Texas, with additional distribution facilities in Garden City, Kansas, and Querétaro, Mexico.
“We are excited to partner with Granite Creek in our management buyout,” said Mr. Tarr. “Beyond providing capital, Granite Creek has a strong track record of working in agribusiness and brings a great Operating Partner in Mike Ray, who knows our products and customer markets. With Mike’s support, we believe that we can accelerate the growth of GAP.”
In collaboration with Granite Creek, Mr. Tarr and other members of the company’s senior management team will hold an equity interest in the business. Additionally, the company’s founder, Ken Ridenour, will retain a minority stake and a position on the Board of Directors. Both James Clark and Mike Ray will also join GAP’s Board of Directors.
“Ken has created and fostered a company with a high-quality product and a remarkable customer-centric culture,” said James Clark, a partner at Granite Creek. “We believe that GAP has all the necessary attributes for continued success and look forward to working with Ken, Ben, and the rest of the management team to propel GAP into its next phase of growth while maintaining its core values and product reputation.”
Post-closing, GAP and Granite Creek will aim to expand the company’s facilities, enhance product development capabilities, and further penetrate domestic and international markets.
The animal feed additives market is poised for substantial growth. According to a report by Grand View Research, the global market is projected to grow at a compound annual growth rate of 5.1%, reaching $52.7 billion by 2030. This growth is driven by increasing demand for high-quality animal protein and a growing emphasis on sustainable livestock production practices.
Granite Creek’s other recent investments in the animal and veterinary sector include the 2020 acquisition of Veterinary Pharmaceutical Solutions, a licensed animal compounding pharmacy, and VPS’s May 2024 add-on acquisition of Diamond Animal Health, a contract manufacturer and researcher of animal vaccines and pharmaceuticals.
Granite Creek has further expanded its agribusiness portfolio with strategic investments. In 2020, the firm partnered with agribusiness executive Jim Zimmer to form Moraine Farmland Partners, a fund dedicated to purchasing and managing farmland properties in the Midwestern United States. In 2023, Granite Creek invested in NYP Corp., a packaging and manufacturing distributor serving the wholesale nursery, agricultural, and industrial markets.
Granite Creek typically invests $10 million to $20 million in companies with revenues ranging from $25 million to $100 million and EBITDA between $3 million and $15 million. Sectors of interest include business services, food and agribusiness, healthcare, and niche manufacturing and distribution. In November 2023, the firm closed its third investment fund at $300 million, surpassing its target. Granite Creek, founded in 2005, is headquartered in Chicago.
© 2024 Private Equity Professional | November 26, 2024
