Adapted from a press release:
Beach Point Capital Management's Tactical Fund has acquired a controlling stake in Wet Noses, a manufacturer of human-grade, natural and organic pet food and treats, following its minority investment in the pet food company in December 2019.
Founded in 1998, Wet Noses has built a customer base thanks to its differentiated offering of branded pet treats. It now serves a growing list of private-label and contract manufacturing partners. Over the past decade, the company has increased its capacity by including three human-grade baking lines at its Seattle facility and expanded its product line beyond treats to include foods such as baked kibble.
The transaction was made in partnership with Wet Noses founder Jasmine Galligan. As part of the transaction, Galligan will return to the company as CEO, along with the former COO Jeff Quinn. The investment will support Wet Noses' manufacturing capacity expansion to serve the growing demand for natural and organic pet foods and treats.
"We are excited to have Jasmine and Jeff rejoin the company and lead Wet Noses during its next phase of growth," Evan Klebe, Managing Director at Beach Point, said in a press release. "Both executives have a deep knowledge of the core business and its history, which, coupled with the added financial and strategic resources Beach Point can offer, will help the business fully capitalize on the compelling opportunities it sees across the pet treat and food market."
"Beach Point has been a terrific partner since its initial investment in 2019 and has been instrumental in implementing a growth strategy that has already expanded our customer relationships and product capabilities and enhanced our overall approach to building our business," Galligan said in a press release. "I am excited to rejoin the company's leadership team with Beach Point's support as we invest in meeting the growing demand for our products."
About Beach Point Capital Management
Beach Point Capital Management is a multi-strategy investment manager making credit, private equity, real estate and structured product investments. As of December 31, 2022, Beach Point Capital Management manages US$14.5 billion in AUM on behalf of institutional investors. The firm is headquartered in Santa Monica, CA, and has offices in New York, London, and Dublin.
About private equity investment in pet food
Private equity firms have increasingly invested in pet food companies in recent years. Private equity firms typically invest in companies that have a proven track record of profitability and growth potential. They provide capital to help these companies expand and develop their businesses, with the aim of generating strong returns for their investors.
When it comes to pet food companies, private equity firms may invest in companies that are established players in the industry, or they may target up-and-coming brands that are poised for growth. They may also focus on companies that are developing new and innovative products, such as premium or natural pet food options.
Private equity firms may take different approaches to invest in pet food companies. They may acquire a controlling stake in a company and work closely with management to implement strategic changes and drive growth. Alternatively, they may take a more passive approach, providing capital to a company without taking an active role in its management.
Overall, private equity firms can bring significant resources and expertise to pet food companies, helping them to expand their reach, develop new products, and improve their operations. At the same time, private equity firms can benefit from investing in the growing pet food industry, which has shown strong demand and growth potential in recent years.
