The mix of Canidae and Pure Stability pet meals firms was a real merger, with each firms sustaining their particular person manufacturers, executives from each firms advised Petfood Business. After the deal finalizes, the funding corporations L Catterton and Nexus Capital Administration can have 50-50 possession of the yet-to-be-named mixed firm.
“It is enterprise as traditional for the following few months till the deal lastly closes,” Brian Connolly, CEO of Pure Stability stated.
“After that there is going to be an integration course of between the 2 firms, which can finally find yourself with the 2 manufacturers to be managed by the identical firm,” Jacopo D’Alessandris, Co-CEO and chief industrial officer at Canidae Pet Meals stated. “It is a one plus one equals three on this state of affairs, as a result of there are some sturdy complementarities and synergies. Initially, from a manufacturing standpoint, Canidae owns its personal facility in Texas. We make greater than 90% of our meals ourselves. We management the whole provide chain. Even the packaging is made within the U.S. And Pure Stability does not.”
Manufacturing technique behind Canidae, Pure Stability merger
Bringing the 2 firms collectively will permit Canidae’s manufacturing facility to provide for each manufacturers, D’Alessandris stated. The association will assist enhance fill charges for each firms.
“Pure Stability has a co-packer procurement technique,” Donnelly stated. “Co-packing will proceed to be an vital a part of our technique for dry, for moist and kibble.”
The merger will assist Pure Stability diversify and handle manufacturing dangers, he stated.
Whereas the 2 manufacturers are each within the premium pet for specialty area, D’Alessandris stated, there are some completely different channels and retailers among the many two firms. Likewise, the merger will open alternatives for enlargement within the U.S. and internationally.
Canidae making their very own pet meals, Canidae additionally grows a few of its personal substances via a partnership with a farm in Kansas. Pure Stability will ultimately acquire entry to that supply of substances, though the recipes and formulations have but to be developed.
Integrating the availability chain helped Canidae keep away from the bottlenecks and shortages which have plagued different pet meals firms throughout the previous a number of years.
Final 12 months, Canidae constantly stored fill charges above 90%, whereas many opponents have been beneath 50%, D’Alessandris stated. Whereas Canidae had some challenges sourcing sure substances, for instance lamb from New Zealand or nutritional vitamins and probiotics from abroad, most of all the things else was obtainable as a result of the corporate managed these sources.
Pure Stability and Canidae pet meals firms to merge
Tailored from a press launch:
Pure Stability, a premium specialty pet meals model, and Canidae, a premium, sustainable pet meals firm, introduced they’ve entered right into a definitive merger settlement below which the businesses will mix. The mix unites two specialty pet meals manufacturers with complementary but differentiated choices to drive innovation and progress for the advantage of pet mother and father in every single place. Phrases of the transaction weren’t disclosed.
For greater than 30 years, Pure Stability has provided premium merchandise with high-quality, protein-forward substances spanning pet food, cat meals and treats. Equally, since its founding 25 years in the past, Canidae has a wealthy historical past within the pet meals area, providing each canine and cat meals merchandise with a deal with goodness for pets and the planet via regenerative agriculture and sustainable operations.
The mix will leverage each firms’ shared ardour for bettering the well-being and lives of pets via easy vitamin, responsibly sourced substances and protein-rich merchandise. The mixed firm’s flagship choices will embody Canidae’s Pure, Goodness and All Life Phases, in addition to Pure Stability’s Restricted Ingredient (LI) and Authentic Extremely product strains.
Historical past of Pure Stability, Canidae, traders
As a part of the transaction, L Catterton, a number one international consumer-focused funding agency and majority shareholder of Canidae, and Nexus Capital Administration, another asset funding firm and majority shareholder of Pure Stability, are every contributing new progress capital to assist the profitable integration and strategic long-term enlargement of the mixed firm.
Based in 1989 by actor Dick Van Patten, Pure Stability has exchanged possession a number of instances, first merging with Del Monte Pet Merchandise in 2014, which turned Large Coronary heart Pet Merchandise and was acquired by J.M. Smucker in 2015. In late 2020, Smucker offered Pure Stability to Nexus Capital Administration. In 2021, the corporate had revenues of US$264 million, in keeping with the High Pet Meals Corporations Database.
Canidae launched its personal pet meals ingredient rising operation in Kansas in 2021. As a privately held firm, Canidae’s annual revenues haven’t been obtainable, in keeping with the High Pet Meals Corporations Database. The database reported the corporate had two services and 125 staff in 2021.
Statements from each house owners
“Each Canidae and Pure Stability have wealthy legacies, stable model recognition and robust client affinity, and this mix permits us to construct on the strengths of every firm,” stated Andrew Taub, managing associate, and Matt Lischick, associate, with L Catterton. “As a mixed firm, we can streamline manufacturing capabilities, spend money on product innovation and construct on every firm’s partnerships with key pet retailers.”
“Pure Stability has a confirmed place as a pioneer within the premium specialty pet meals business, and we’re assured that Canidae is the best associate to boost and speed up the model’s strategic progress following the previous two years as a stand-alone enterprise,” added Damian Giangiacomo, associate, and Jonathan Whitlock, supervisor director, with Nexus Capital. “Collectively, we are going to create high-quality merchandise anchored round premium, restricted ingredient formulation and profit from enhanced scale and a gifted workforce.”
