Wind Point Partners and portfolio company Pestell Group announced Aug. 8 that Pestell has acquired Pro-Ag Products and Verus Animal Nutrition through its Pestell Minerals & Ingredients (PMI) business unit.
According to the announcement, Pro-Ag is a distributor of feed ingredients, feed additives and animal health products, while Verus provides performance animal nutrition products supported by in-house technical expertise. Both businesses are headquartered in Winnipeg, Man., and operate as one entity serving the North American feed ingredient and animal nutrition industries.
The acquisition of Pro‐Ag and Verus is strategic to Pestell’s PMI business unit, which also distributes feed ingredients, because the combination provides the opportunity for both companies to leverage their product portfolios and cross-sell to their respective customer bases, the announcement said. Pro-Ag and Verus have a strong feed additive portfolio that complements PMI’s existing minerals and feed ingredient product offering. In addition, the acquisition expands PMI's geographic presence farther west in Canada.
PMI chief executive officer Jerry Vergeer said, “We are excited about the acquisition of Pro-Ag and Verus and what it means for our customers. The combined business provides compelling growth opportunities with a broader product portfolio as well as a more expansive geographic footprint across all of Canada. Pro-Ag and Verus will be integral components in achieving our future initiatives, particularly as it relates to enhancing our presence in feed additives and feed ingredients throughout North America.”
Paul Peterson, managing director with Wind Point Partners, stated, “Pro-Ag and Verus are very strategic acquisitions that we are thrilled to have as part of the PMI business. We expect these acquisitions to help us create additional avenues for growth as we focus on maximizing our geographic reach, generating cross-selling opportunities and augmenting the existing product portfolio.”
The acquisition of Pro-Ag and Verus continues Wind Point’s long history of partnering and working with entrepreneur-owned businesses. This marks the first add-on acquisition for Pestell Group’s PMI business unit since Wind Point’s original acquisition of Pestell Group in June 2018, the announcement said.
Pro-Ag president Doug Beckie said, “We look forward to combining our businesses with Pestell Minerals & Ingredients to offer a broader portfolio of nutritional products to our feed industry customers. We believe Pestell is the right fit for Pro-Ag, and the formation of this partnership represents a meaningful step forward for the business and our entire team as we enter the next phase of growth.”
Antares Capital, BMO Sponsor Finance and PennantPark led the debt financing for the transaction. McMillan LLP and Kirkland & Ellis LLP served as legal counsel to Pestell.
Pestell Group is comprised of two distinct business units: Targeted PetCare (TPC) and PMI. Vergeer is an experienced executive within the animal nutrition industry who joined PMI as CEO in 2019. In cooperation with Vergeer and management, Wind Point said it will seek to continue expanding the PMI platform through a combination of organic growth and complementary acquisitions.
PMI is a leading distributor of nutritional minerals and ingredients for the feed industry. TPC is a full‐line manufacturer of animal litter and bedding products and a co-manufacturer of dental pet treats. Pestell Group is headquartered in Ontario, with both business units sharing warehousing and manufacturing space. Pestell Group also maintains 15 third-party warehouses across North America for its animal feed products business.
Wind Point Partners is a Chicago, Ill.-based private equity investment firm with approximately $2 billion in assets under management. The firm targets investments in the consumer product, industrial product and business service sectors.
Editor's Note: Pestell Group and its PMI unit are not connected with PMI Nutrition, a Land O'Lakes business that supplies feed additives to the swine, poultry, dairy and beef cattle sectors.