Nexus Capital Management has agreed to acquire the Natural Balance pet food business of The J.M. Smucker Co. for $50 million in cash.
Natural Balance is a premium pet food brand specializing in dog and cat food products manufactured with high-quality meats, carbohydrates, fats, fruits and vegetables. The company’s products are sold through specialty retailers and e-commerce channels.
In the fiscal year ending in April 2020, the business had net sales of $220 million. Natural Balance is headquartered near Los Angeles in Burbank, California.
The Natural Balance dog food brand was founded by actor, comedian, businessman, and animal welfare advocate Dick Van Patten in 1989. The business was acquired by Big Heart Pet Brands (then Del Monte Pet Foods) in May 2013 and acquired by J.M. Smucker in March 2015.
“We are extremely excited by the opportunity to acquire the Natural Balance business,” said Damian Giangiacomo, a partner at Nexus. “We believe in the brand’s strong legacy and the ability to reinvigorate the business as an independent company in partnership with the strong management team we have assembled.”
Once this transaction closes – expected by the end of January 2021 – Brian Connolly will be named as the new CEO of Natural Balance. Mr. Connolly is the co-founder of pet food maker Castor & Pollux and a former board member of Merrick Pet Care. In 2012, Merrick, then a portfolio company of Swander Pace Capital, acquired Castor & Pollux. Swander Pace exited Merrick in 2015 through a sale of the company to Nestlé Purina.
“We are pleased to announce that Brian will lead the new Natural Balance business as CEO,” added Mr. Giangiacomo. “Brian played a critical role on our deal team throughout due diligence and crafting the go-forward strategic and operating plan for the business. Brian’s successful 20 years of experience in pet food as the co-founder of Castor & Pollux and former board member at Merrick Pet Care ideally position the Natural Balance brand for continued relevance with pet specialty retailers and pet owners.”
Nexus makes investments of $20 million to $150 million in opportunistic credit, structured investments, and private equity across a range of industries including industrials, consumer & retail, food & beverage, services, education, and distribution & logistics. The firm was co-founded in 2013 by ex-Apollo Global professionals Damian Giangiacomo and Michael Cohen and is headquartered in Los Angeles.
“The sale of Natural Balance reflects our strategy to direct investments and resources toward areas of the business that will generate the greatest growth and profitability,” said CEO Mark Smucker. “Today’s announcement helps the company further focus on the core brands within our pet food and pet snacks portfolio including Milk-Bone and Meow Mix among others, which together create a unique portfolio with significant long-term growth potential that meets consumer needs across value, mainstream and premium offerings.”
The J. M. Smucker Company (NYSE: SJM) is a manufacturer of fruit spreads, ice cream toppings, beverages, shortening, peanut butter, and other products. The company was founded in 1897 and is headquartered near Akron in Orrville, Ohio.
© 2020 Private Equity Professional | December 8, 2020
Graham Partners has sold BrightPet Nutrition Group, a maker of premium and super-premium pet food and treats.
BrightPet’s products are sold both domestically and internationally and the company is one of only a few USDA Certified Organic pet food producers in the US.
“We saw a strong core business with numerous avenues for growth fueled by the humanization of pets and had conviction that BrightPet was a great business given its expertise in formulations, key certifications, and relentless focus on quality,” said Joe Heinmiller, a managing principal at Graham Partners. “We are proud to have helped build a leading pet food and treat producer and we wish BrightPet continued success under new ownership.”
Philadelphia-based 
C.J. Foods, a maker of specialty dry pet food for US super-premium brands, has closed its acquisition of pet food maker American Nutrition. C.J. Foods has been a portfolio company of J. H. Whitney Capital Partners since June 2014.
C.J. Foods employs more than 400 people at its six processing plants — two in Pawnee City, Nebraska; two in Bern, Kansas; one in Baxter Springs, Kansas; and one in Brownwood, Texas — with a combined total of 620,000 sq. ft. of plant space from which the company produces nearly half a billion pounds per year of extruded pet foods and treats. C.J. Foods was founded in 1985 by the husband and wife team of Chuck and Joyce Kuenzi and is headquartered in Bern, Kansas.
C.J. Foods, a maker of specialty dry pet food for US super-premium brands, has agreed to acquire pet food maker American Nutrition. C.J. Foods has been a portfolio company of J. H. Whitney Capital Partners since June 2014. The firm acquired the business from Trinity Hunt Partners.
C.J. Foods employs nearly 500 at its six processing plants — two in Pawnee City, Nebraska; two in Bern, Kansas; one in Baxter Springs, Kansas; and one in Brownwood, Texas — with a combined total of 620,000 sq. ft. of plant space from which the company produces nearly half a billion pounds per year of extruded pet foods and treats. C.J. Foods was founded in 1985 by the husband and wife team of Chuck and Joyce Kuenzi and is headquartered in Bern, Kansas.
Red Collar Pet Foods, a portfolio company of Arbor Investments, has acquired Hampshire Pet Products.
The buy of Hampshire Pet expands Red Collar’s capabilities in the premium and super premium baked and cold formed treats category. Additionally, the added production capabilities will make Red Collar one of the largest private label and contract manufacturers of dog and cat treats in North America.
“We are excited to add Hampshire Pet’s well-regarded pet treat franchise to Red Collar’s treat business,” said Arbor Partner Chris Harned. “With Red Collar having a facility in nearby Miami, OK, the two treat businesses have complementary manufacturing capabilities, similar agile innovation-driven cultures and great track records of exceeding customer expectations. We look forward to continued growth and development of our two-plant pet treat ‘center of excellence’ together with veteran leader Julie Larson, who will report to Chris Hamilton, President and CEO of Red Collar.”
Arbor invests in the food, beverage and related industries. Typical targets will have annual revenues of up to $300 million and EBITDA from $5 million to $50 million. Since founding in 1999 the firm has acquired or invested in over 55 food and beverage companies in North America. In July 2016, Arbor closed its fourth equity fund, Arbor Investments IV LP, with $765 million of capital and its first subordinated debt fund, Arbor Debt Opportunities Fund I LP, with $125 million of capital. Arbor is based in Chicago (
Outward Hound, a portfolio company of J.W. Childs Associates, has acquired Wholesome Pride, a maker of natural ingredient pet treats. This is the first add-on acquisition for Outward Hound since J.W. Childs acquired the company from The Riverside Company in December 2017.
“We’re excited to add the Wholesome Pride line of products to the Outward Hound portfolio,” said David Fiorentino, a Partner at J.W. Childs. “This strategically complementary combination creates exciting opportunities and a new platform for growth.”
J.W. Childs invests in middle market companies based in North America. Sectors of interest include consumer products, specialty retail and healthcare. The firm was founded in 1995 and is based in the Boston suburb of Waltham, MA (
Main Post Partners has made an investment in Nulo Pet Food, a fast growing premium pet food brand.
“We have known Michael and have been following Nulo’s success closely for years,” said Josh McDowell, Partner at Main Post. “Nulo is among the fastest growing, most respected brands in the industry and this investment is an excellent opportunity to enter the rapidly growing pet sector where parents are passionate about their pets’ health and well-being. We look forward to partnering with Michael and the Nulo team to support the brand’s continued growth.”
Main Post makes both control and non-control investments in middle market growth companies in the consumer, business services and industrial growth sectors. The firm was founded in April 2014 by managing partners Sean Honey and Jeffrey Mills, both former partners at Weston Presidio. In March 2016, the firm held a final above target closing of its inaugural fund, Main Post Growth Capital LP, with a total of $400 million in limited partner commitments, well in excess of its initial target of $250 million. Main Post is headquartered in San Francisco (
L Catterton has entered into an agreement to sell Ainsworth Pet Nutrition to The J.M. Smucker Company for $1.9 billion. Ainsworth Pet Nutrition was founded in 1933 by George Lang and L Catterton invested in the company in 2014 in partnership with the founding Lang family.
L Catterton invests from $50 million to $400 million of capital in consumer-focused companies. Areas of specific interest include food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. The firm was founded in 1989 and has raised over $14 billion of equity capital across six funds. L Catterton has been active in the pet food and pet care sectors before. Current and past investments include Inspired Pet Nutrition, Just Food For Dogs, Lily’s Kitchen, Nature’s Variety, PetVet Care Centers and Wellness Pet Food. L Catterton has 17 offices globally and is headquartered in Greenwich, CT (
In 2016, Nutrish was named the Fastest Growing U.S. Pet Food Brand by Euromonitor International and the brand was also the fastest-growing brand across all consumer packaged goods categories in 2016, as tracked by A.C. Nielsen. “When we partnered with the Lang family and Ainsworth in 2014, we saw a great opportunity to help a strong brand reach its full potential,” said Scott Dahnke, Global Co-CEO of L Catterton. “Working with the Lang family and management, we were able to support the rapid growth of the Nutrish brand through targeted marketing and advertising programs to create a market leader, while improving manufacturing and supply chain operational efficiencies. We are pleased to have participated in Ainsworth’s tremendous success. Today’s transaction represents a terrific outcome for the business, which will thrive and grow together with Smucker.”
The J. M. Smucker Company (NYSE: SJM) is a manufacturer of fruit spreads, ice cream toppings, beverages, shortening, peanut butter, and other products. The company was founded in 1897 and is headquartered in Orrville, OH (
“Ainsworth Pet Nutrition is an excellent strategic fit for our company, as the Nutrish brand adds another high-growth, on-trend brand to our pet food portfolio,” said Mark Smucker, Chief Executive Officer. “Their team has done a tremendous job growing this business, building Nutrish into one of the most recognizable premium pet food brands in the United States. We look forward to working with the talented Ainsworth team, as we know their passion for pets runs as deep as ours.”
Bregal Partners has acquired TDBBS, a provider of natural pet chews and other treats sold under the Best Bully Sticks, Barkworthies, and Paw Luxury brand names.
In recent years, growth in the US market for pet treats has outpaced the more mature pet food and supplies markets. Within pet treats, the natural and “occupational” chews category has been a key contributor to this growth as pet owners continue to view their dogs as members of the family and are seeking out high-quality products to keep their dogs busy, happy, and healthy.
“We see a clear path for TDBBS to leverage its portfolio of high-quality products to take advantage of tailwinds surrounding the growing natural treats and chews category,” said Charles Yoon, a Managing Partner at Bregal. “As consumers increasingly demand higher quality, limited ingredient products for their pets, there is a notable opportunity to build greater awareness of the benefits of natural chews and drive new product innovation. We intend to continue investing behind our impressive team and infrastructure as we transform the natural chews category.”
Mr. Hassett joins the company from Beam Suntory, one of the largest producers of distilled beverages worldwide, where he was President – Americas. He previously spent 10 years at Campbell Soup as Chief Customer Officer for its North America business, and also served at Kellogg’s and Procter & Gamble. “I am very excited for the opportunity to drive value creation at an organization as dynamic as TDBBS,” said Mr. Hassett. “The company has enormous potential, and I look forward to working closely with Bregal Partners and the management team in further growing the business.”
Bregal Partners invests from $25 million to $90 million of equity in companies operating in the branded consumer products, health and wellness, food and beverage, specialty retail, energy services, and healthcare sectors. Target investments typically have from $15 million to $75 million of EBITDA. The firm has $600 million of committed capital funded by a sixth-generation family foundation. Bregal Partners is based in New York (
