Wind Point Partners Announces Formation Of Pestell Nutrition And Targeted PetCare

Wind Point formally separates Pestell Group into two independent portfolio companies

New Hamburg, Ontario, November 25, 2019 – Wind Point Partners (“Wind Point”) and Pestell Group (“Pestell”) are pleased to announce the formation of Pestell Nutrition (“PN”) and Targeted PetCare (“TPC”). PN 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.

PN is a leading 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, PN has completed the acquisitions of Pro-Ag Products (“Pro-Ag”), Verus Animal Nutrition (“Verus”) and Premier Ag Resources (“PAR”). 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. And 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. Since June 2018, TPC has completed the acquisitions of BPV Environmental (“BPV”), Targeted Pet Treats (“TPT”) and VersaPet. BPV is a leading manufacturer of alternative, paper-based animal litter, small animal bedding, and lawn and garden products. TPT is a leading co-manufacturer of dental treats and long-lasting chews for pets. And both Pestell Pet Products (“PET”) and VersaPet are manufacturers of private label and branded cat litter products.

Paul Peterson, Wind Point Managing Director, commented, “Over the past year, the evolution of PN and TPC has been substantial. A central part of our original thesis was to thoughtfully separate Pestell Group into two portfolio companies, and robust M&A activity at both businesses has accelerated that opportunity. We look forward to further growth and success for PN and TPC alongside our CEO partners, Jerry Vergeer and Matt Miller.”

Jerry Vergeer, PN CEO, stated, “We are excited about PN operating as a standalone 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.”

Matt Miller, TPC CEO, 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 (“PMI”) and Pestell Pet Products, with both operating via one location in New Hamburg, Ontario.

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.