Canidae, Pure Steadiness merge for manufacturing synergies

The mixture of Canidae and Pure Steadiness pet meals corporations was a real merger, with each corporations sustaining their particular person manufacturers, executives from each corporations advised Petfood Business. After the deal finalizes, the funding corporations L Catterton and Nexus Capital Administration may 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 Steadiness mentioned.

“After that there is going to be an integration course of between the 2 corporations, which is able to finally find yourself with the 2 manufacturers to be managed by the identical firm,” Jacopo D’Alessandris, Co-CEO and chief business officer at Canidae Pet Meals mentioned. “It is a one plus one equals three on this scenario, as a result of there are some robust complementarities and synergies. To begin with, 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 Steadiness would not.”

Manufacturing technique behind Canidae, Pure Steadiness merger

Bringing the 2 corporations collectively will permit Canidae’s manufacturing unit to supply for each manufacturers, D’Alessandris mentioned. The association will assist enhance fill charges for each corporations.

“Pure Steadiness has a co-packer procurement technique,” Donnelly mentioned. “Co-packing will proceed to be an essential a part of our technique for dry, for moist and kibble.” 

The merger will assist Pure Steadiness diversify and handle manufacturing dangers, he mentioned.

Whereas the 2 manufacturers are each within the premium pet for specialty area, D’Alessandris mentioned, there are some totally different channels and retailers among the many two corporations. Likewise, the merger will open alternatives for growth within the U.S. and internationally.

Canidae making their very own pet meals, Canidae additionally grows a few of its personal elements by a partnership with a farm in Kansas. Pure Steadiness will finally achieve entry to that supply of elements, 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 corporations throughout the previous a number of years.

Final 12 months, Canidae persistently stored fill charges above 90%, whereas many rivals have been beneath 50%, D’Alessandris mentioned. Whereas Canidae had some challenges sourcing sure elements, for instance lamb from New Zealand or nutritional vitamins and probiotics from abroad, most of the whole lot else was accessible as a result of the corporate managed these sources.

Pure Steadiness and Canidae pet meals corporations to merge

Tailored from a press launch:

Pure Steadiness, 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 mixture 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 Steadiness has supplied premium merchandise with high-quality, protein-forward elements 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 concentrate on goodness for pets and the planet by regenerative agriculture and sustainable operations.

The mixture will leverage each corporations’ shared ardour for bettering the well-being and lives of pets by easy diet, responsibly sourced elements and protein-rich merchandise. The mixed firm’s flagship choices will embrace Canidae’s Pure, Goodness and All Life Levels, in addition to Pure Steadiness’s Restricted Ingredient (LI) and Unique Extremely product traces.

Historical past of Pure Steadiness, Canidae, buyers

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 Steadiness, are every contributing new progress capital to assist the profitable integration and strategic long-term growth of the mixed firm.

Based in 1989 by actor Dick Van Patten, Pure Steadiness has exchanged possession a number of occasions, first merging with Del Monte Pet Merchandise in 2014, which turned Huge Coronary heart Pet Merchandise and was acquired by J.M. Smucker in 2015. In late 2020, Smucker bought Pure Steadiness to Nexus Capital Administration. In 2021, the corporate had revenues of US$264 million, in accordance with the Prime Pet Meals Firms 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 accessible, in accordance with the Prime Pet Meals Firms Database. The database reported the corporate had two amenities and 125 workers in 2021.

Statements from each house owners

“Each Canidae and Pure Steadiness have wealthy legacies, stable model recognition and robust client affinity, and this mix permits us to construct on the strengths of every firm,” mentioned 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 Steadiness has a confirmed place as a pioneer within the premium specialty pet meals trade, and we’re assured that Canidae is the perfect associate to reinforce 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 proficient workforce.”