VMG Partners, a private equity firm that specialises in investing in consumer product companies in the lower middle market, has signed a definitive agreement to sell its portfolio company, Waggin’ Train, a marketer of real-meat dog treats, to Nestle Purina PetCare.
The transaction has received US regulatory approval and is expected to be completed by the end of September.
Kara M. Cissell-Roell, managing director of VMG Partners, says: "We saw enormous potential in this brand when we partnered with the founders of Waggin’ Train three years ago. We are pleased to have played a role in transforming Waggin’ Train into a leading brand and innovator in the real-meat dog treats segment of the pet food industry. Waggin’ Train’s management team, led by chief executive Jerry Peters and chief operating officer Michelle Higdon, provided critical creative direction and daily operational expertise to support Waggin’ Train’s rapid expansion and brand growth. When the transaction is completed, Waggin’ Train will be extremely well positioned to achieve its next level of growth as part of the larger strategic Nestle Purina portfolio."
Through the course of its ownership, VMG and the management team focused on expanding brand awareness, developing and launching products and diversifying sales to a broader base of retail customers. When it was acquired by VMG in late 2007, Waggin’ Train was sold primarily in mass merchandise and wholesale club stores. Waggin’ Train offers a full line of real-meat dog treats made with chicken, duck, and ham.
Jerry Peters, chief executive of Waggin’ Train, says: "The VMG team understood the needs of our small but fast growing business and how to take our company to the next phase of its growth. We worked with them with great confidence and our employees, customers, and investors achieved great results from this mutually beneficial relationship. VMG gave us the freedom to operate entrepreneurially but provided the strategic vision and support needed by the management team, each member of which was focused on the details of a rapidly growing and dynamic business."
BMO Capital Markets and Moelis acted as financial advisers and Kirkland & Ellis acted as legal counsel for Waggin’ Train.
