Growth Capital: Frontenac Company’s Majority Recapitalization of Cloud Star

Date: July 15, 2014

Buyer: Frontenac Company

Seller: Cloud Star Corporation

Price: undisclosed

Terms: Majority Recapitalization

Frontenac Company, a leading private investment firm focused on investing in lower middle market, family held or owner operated businesses, today announced that it has completed the majority recapitalization of Cloud Star Corporation to support the growth plans of this producer of natural and wholesome pet products. Financial terms of the private transaction were not disclosed.

Cloud Star Corporation, located in San Luis Obispo, California, has been dishing up their products to canine and feline connoisseurs since 1999. Their extensive product line includes a wide variety of wholesome and natural treats for dogs and cats, grooming products, and “Wag More Bark Less” merchandise. Simple, easy to read, ingredient statements resonate with pet parents and thrill dogs and cats with even the most finicky palate or sensitive skin. Cloud Star’s treats for dogs and cats are made with the same types of ingredients used in human food, and are suitable for dogs and cats with allergies. The company produces treats free of corn, soy, artificial colors, artificial flavors, byproducts, and preservatives. As part of Cloud Star’s commitment to giving back, the company donates to non-profit organizations benefiting animals, women, children, and the environment.

Frontenac Company is a leading private investment firm focused on investing in lower middle market buyout transactions in the business services, industrial, food and healthcare sectors. Frontenac works in partnership with proven operating leaders, through our executive-centric approach called CEO1ST®, to identify, acquire, and build market leading companies through transformational acquisitions and operational excellence. The firm has built a leading franchise working with the owners of mid-sized businesses, almost always families or founders, as they address complex transition issues of liquidity, management enhancement, and growth planning. Based in Chicago, Frontenac has completed over 25 buyout transactions, and nearly 60 add-on acquisitions, since 2000.

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Week of July 21st News:

Phillips was awarded Distributor of the Year by Pet Age this week. Philips was honored for its commitment to its retail and manufacturing partners and its visionary leadership in the pet industry. Philips is a family owned company that is credited for being the “first to jump onto natural products and organics”. See more at –http://www.petage.com/phillips-given-distributor-of-the-year-award/

 

Natura Petz is now offering 5 new solution-oriented supplements. Natura Petz has introduced organic powders, tinctures and liquid extracts which are alcohol and chemical free, to benefit canine and feline companions. The five new products are: Bionic Body, Dia-Beat-It, Joint Revolution, Sweet Cheeks, and Vitamin Ninja. See more at –http://www.petbusiness.com/articles/2014-07-18/Natura-Petz-Offers-Five-New-SolutionOriented-Supplements–

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Mergers & Acquisitions: Nature’s Variety Acquired by Agrolimen S.A.

Date: July 18, 2014

Buyer: Agrolimen S.A.

Seller: Nature’s Variety

Price: Undisclosed

Terms: Acquisition

Nature’s Variety announced today that Agrolimen has made an investment in the St. Louis-based independent natural pet food company. Nature’s Variety will continue to operate as an independent company through a joint venture between its current shareholders, including Catterton, a leading consumer-focused private equity firm, and Agrolimen. Nature’s Variety will continue to be headquartered in St. Louis with operations in Lincoln, Nebraska. Nature’s Variety produces natural pet food through two brands – Instinct®, a leader in raw pet food; and Prairie®, a balanced holistic line of food. Its brands are sold in over 10,000 pet specialty retailers worldwide.

Nature’s Variety is an independent company producing premium, natural pet foods. The company was founded by Bob Milligan and Nature’s Variety was introduced to the retail market in 2002. It is headquartered in St. Louis with manufacturing operations in Lincoln, Nebraska

Agrolimen is a Spanish group specialized in consumer goods, with leading brands in food and pet food industries and well as quick service restaurants. With more than 75 years of activity, it has established itself as one of the main European groups in these business areas.

See more at –http://www.marketwatch.com/story/natures-variety-enters-joint-venture-with-agrolimen-to-drive-continued-growth-2014-07-18

 

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Week of July 14th News:

Woof Gang Launches Private Label. Woof Gang Products and Distribution announced a new line of private label products that will be available exclusively at Woof Gang Bakery and Grooming locations. Their products are natural, free of by-products and do not include fillers such as corn or soy.

Philadelphia SBA names EcoTech Marine Exporter of the Year. The US Small Business Administration’s (SBA) Philadelphia district and Mid-Atlantic region named Allentown, PA.-based EcoTech Marine “Small Business Exporter of the Year”.

New Trademark Rights in Russia to Open Doors for Small Pet Food Manufacturers. The Federal Council in Russia is set to amend the Civil Code to grant equal rights to manufacturers who wish to use product images on their packaging.  This will not only create wider opportunities for new brands, but will cause a shift in market trends among Russian consumers, according to research firm Canadean. We believe that caution is warranted!

The Dog and Cat Cancer Fund Receives $40,000 Petco Grant. The Dog and Cat Cancer Fund has been awarded a $40,000 from the Petco Foundation to fund treatment grants for dogs and cats fighting cancer. This funding will ultimately allow for more pets to receive treatment as well as the funding per pet to increase.

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Week of July 7th News:

Nature’s Logic Adds New Distributors. Nature’s Logic’s full line of products is now being distributed by Monarch Pet Products and Lucid Distribution. Monarch Pet Products of Denver is a wholesale distributor of natural pet foods, treats and supplies. Monarch Pet Products services pet specialty retailers in Colorado, New Mexico, and Wyoming. Lucid Pet Distributors is a supplier of pet health products in Western Canada offering a number of natural products including foods, treats, supplements, toiletries, cat litters, accessories and more.

Woof Gang Bakery to Open 20 New Stores. Woof Gang Bakery will open the company’s first franchise locations in the states of Kansas and Virginia. The Company is also expanding with 18 additional franchise stores opening in Florida, North Carolina, New Jersey, Nevada and Texas.

Lincoln Bark Expands National Distribution. The company added Pet Food Experts, PFX Midwest, Holistic Pet Source and Aloha Natural Pet Supply as distributor partners. –See more at: http://www.petbusiness.com/articles/2014-07-08/Distributor-Announcements-July-2014?print=true

Caru Pet Food Adds 7 Distributors in US and Canada. Four distributors will distribute the company’s food in the U.S., including DD (Dizzy Dogg) Industries, Zeigler’s Distributor, United Pacific Pet and Pet Food Experts. Maddies Natural Pet Products, Maritime Pet Supplies and MJM Unique Pet Supplies will distribute Caru’s products in Canada. – See more at: http://www.petbusiness.com/articles/2014-07-08/Distributor-Announcements-July-2014?print=true

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Mergers & Acquisitions: Cat-Sip Real Milk Treats Acquired by PET-AG, Inc.

Date: July 1, 2014

Buyer: PET-AG, Inc.

Seller: Cat-Sip Real Milk Treats for Pets

Price: Undisclosed

Terms: Acquisition

PET-AG, Inc.,  a leading pet product development and manufacturing company, acquired Cat-Sip Real Milk Treats for Pets, developed by AK Pharma, inc.

Cat-Sip is a first-of-its-kind real dairy product that offers the great taste and wholesome benefits of milk without the potential lactose-related digestive issues.

With the purchase of Cat-Sip, PET-AG is able to expand its milk based nutritional product portfolio offered by PET-AG, Inc. As they continue to develop and build the PET-AG WELL ANIMAL GROUP portfolio, their goal is to remain committed to incorporating and developing more high-quality products, like Cat-Sip, to support animals throughout every life stage.

To read more about the transaction please click here

 

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Week of June 30th News:

Kinn Expands to Pet Specialty Market. Kinn, a manufacturer of high-quality products for pets and their owners, is expanding their distribution beyond the established veterinary channel into the pet specialty retail space.  Kinn’s North American expansion efforts will be lead by Jack Drasner of PRISM, Pet Results In Sales and Marketing. Kinn believes that Jack’s expertise will be a major asset as the company enters exciting new growth categories such as biodegradable disposable bowls, and plush-comfort collars and leashes. –See more at: http://www.petbusiness.com/articles/2014-07-02/Kinn-Expands-to-Pet-Specialty-Market-#sthash.OGoh9eiZ.dpuf

Pet Spending Higher Than Ever WITH AN Estimated $58.5 Billion in Spending in 2014. A recent article from the American Pet Products Association blog states that 2013 data revealed that spending reached an all-time high of $55.7 billion. Estimates for 2014 are $58.51 billion, projecting a 4.9% growth from 2013. –See more at: http://petindustryinsight.com/2014/07/01pet-spending-higher-than-ever-with-an-estimated-58-5-billion-in-spending-in-2014/

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