Private equity firm Wind Point Partners and its Pestell Group announced Nov. 25 the formation of Pestell Nutrition and Targeted PetCare (TPC).

Separately, on Nov. 25, Wind Point and Pestell Nutrition announced the acquisition of Premier Ag Resources (PAR), a value-added distributor of specialty pet food ingredients and feed additives across Canada and the U.S.

Pestell Nutrition and TPC will now operate as two independent businesses, having previously operated under parent company Pestell Group, a business acquired by Wind Point in June 2018.

Pestell Nutrition is a distributor of high-value nutritional additives and ingredients for the animal nutrition and pet food industries across Canada and the U.S. Since June 2018, Pestell Nutrition has completed the acquisitions of Pro-Ag Products, Verus Animal Nutrition and now PAR.

Wind Point noted that Pro-Ag is a distributor of feed ingredients, feed additives and animal health products. Verus provides performance animal nutrition products supported by in-house technical expertise. PAR operates as a value-added distributor of specialty pet food ingredients and feed additives across Canada and the U.S.

TPC is a full-line manufacturer of animal litter and bedding products and a co-manufacturer of dental pet treats.

Wind Point managing director Paul Peterson said, “Over the past year, the evolution of Pestell Nutrition and TPC has been substantial. A central part of our original thesis was to thoughtfully separate Pestell Group into two portfolio companies, and robust [merger and acquisition] activity at both businesses has accelerated that opportunity. We look forward to further growth and success for Pestell Nutrition and TPC alongside our chief executive officer partners, Jerry Vergeer and Matt Miller.”

Pestell Nutrition CEO Vergeer said, “We are excited about PN operating as a stand-alone entity and what it means for our customers. We continue to believe that PN can capitalize on compelling growth opportunities in nutrition and health while expanding our geographic footprint across the U.S. and Canada.”

TPC CEO Miller noted, “The transformation of TPC since June 2018 has been remarkable. Since joining, we have more than quadrupled pet revenues across organic growth and strategic acquisitions. Our team is proud of the unique value proposition we’ve built, which has allowed us to be the preferred partner with so many of our customers.”

Wind Point closed on the original Pestell Group transaction in June 2018, acquiring the business from serial entrepreneur Don Pestell, who founded the business in 1972. Upon Wind Point’s original acquisition, Pestell was comprised of two business units -- Pestell Minerals & Ingredients and Pestell Pet Products -- with both operating via one location in New Hamburg, Ont., the announcement said.

BMO Sponsor Finance led the debt financing for the PN transaction. Antares Capital and Maranon Capital led the debt financing for the TPC transaction. Kirkland & Ellis LLP served as legal counsel to Wind Point, and BKD LLP provided transaction advisory services in connection with the transaction.

Premier Ag Resources

According to the PAR announcement, the acquisition is complementary to Pestell Nutrition, which also distributes a portfolio of feed ingredients, additives and related products, as the combination provides the opportunity for both companies to leverage their product offerings and cross-sell their respective customer bases.

Furthermore, PAR represents an opportunity for Pestell Nutrition to continue to penetrate the value-added specialty pet food ingredient and feed additive segments -- a key strategic growth area for the company, the announcement said.

Post-integration, management will focus on optimizing PAR’s offerings and operations in an ongoing effort to establish the combined business as the "preeminent" distributor of animal nutrition and specialty pet food ingredients across North America, Wind Point said.

“PAR is a great company with a diverse product portfolio and strong customer base across both the specialty pet food ingredient and animal feed additive sectors. When combined with Pestell Nutrition, we further strengthen our product offering to our customers and expand our geographic reach. The management and team at Premier Ag Resources have done an outstanding job of growing this great company over the past 27 years and we look forward to working with them to build on that success,” Vergeer said.

Peterson added, “PAR is a highly strategic add-on and supports numerous aspects of Wind Point’s value creation plan. This acquisition is another example of how the Pestell Nutrition team is executing on our strategy to become a more diversified and value-added distributor across the animal nutrition industry. We’re very excited about this partnership and are looking forward to the opportunities ahead.”

PAR co-founders Jim Finn and Dave Hensel added that the ownership transition “represents a transformative milestone for the business. Pestell Nutrition’s resources and industry expertise will accelerate the trajectory at PAR, facilitating long-term, sustainable growth. We are excited about PAR’s future as part of Pestell Nutrition.”

BMO Sponsor Finance led the debt financing for the transaction. Kirkland & Ellis LLP served as legal counsel to Pestell Nutrition.