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PAI Partners To Acquire Alphia and Expand Into the Thriving Pet Food Market
French private equity firm PAI Partners announced it will be acquiring Alphia, a pet food co-manufacturer in Colorado.
On August 24, 2023, private equity firm PAI Partners from France announced that it would acquire Alphia, a pet food co-manufacturer in Colorado, United States that offers customized food manufacturing for leading pet food brands and retailers. Alphia is PAI Partner’s second investment in the United States. The previous investment was its largest at $3.3 billion for Tropicana Brand Group from PepsiCo.
Transaction Summary
Our Take on the Acquisition
PAI Partners (acquirer) acquired Alphia (target) to expand into the pet foods market. PAI Partners aims to expand and invest further in Alphia. As a co-manufacturer of pet food, Alphia is best suited for the investment since it has partnerships with leading brands and pet food retailers and serves the entire United States. As the market for pet food grows, Alphia, through its diversified partnership, is expected to grow with it.
The Facts of the Acquisition
- Target: Alphia is a pet food co-manufacturer based in Colorado with six pet food manufacturing units in the United States. Alphia was formed through the merger of American Nutrition, Inc. and C.J. Foods, Inc. in 2020. It also has two subsidiaries: LANI, a milling company, and Veracity, a warehousing and logistics provider.
- Acquirer: PAI Partners is a private equity fund based in France. The company currently manages USD $27.8 billion and invests in business services, food and consumer goods, general industries, and healthcare in Europe and the United States.
The Transaction
| Date: | August 24, 2023 |
| Price: | Undisclosed |
| Purpose: | To invest in the pet foods segment |
| Acquirer’s Statement: | Maud Brown, a Partner at PAI Partners and Head of PAI’s US Team – “We are excited to announce our investment in Alphia, which represents our second platform in the U.S. We are committed to building the PAI franchise in the U.S. and look forward to our continued growth and success in this market.” Winston Song, a Partner at PAI Partners and Consumer Lead in the U.S. – “Alphia is a best-in-class company and plays an invaluable role in the value chain of pet food and treats, an exciting consumer category with strong secular tailwinds. Pet parents continue to seek out innovation, quality and value – Alphia has set the industry standard as the trusted partner to many leading brands and retailers. We look forward to partnering with David McLain [CEO and President of Alphia] and his mission-driven team as we continue to invest behind Alphia to grow and scale the platform.” |
Target/Seller: Alphia
Company Information
| Target: | Alphia |
| Website: | alphia.com |
| Founded: | 2020 |
| Industry: | Pet Food Manufacturing |
| Type: | Private with private equity funding |
| Employees: | 1,200 (Unconfirmed source: ZoomInfo) |
| Investors: | J.H. Whitney Co. – A private equity firm based in Connecticut, United States, established in 1946, it has invested in over 400 companies and currently manages USD $1.0 billion in private capital. |
| Locations: | Head Office: 1601 Wewatta, Suite 650, Denver, Colorado, United States LANI Head Office: 310 Railroad Street, Bern, Kansas, United States Veracity Logistics Head Office: Freeport Center Building A16-H, Clearfield, Utah, United States California Manufacturing Unit #1: 832 N Lander Ave, Hilmar, California, United States Kansas Manufacturing Unit #2: 100 N Youngman Ave, Baxter Springs, Kansas, United States Warehouse #1: 910 E 29th St., Lawrence, Kansas, United States Nebraska Manufacturing Unit #3: 71045 N Highway 50, Pawnee City, Nebraska, United States Pennsylvania Manufacturing Unit #4: 1111 N Park Dr, Hazleton, Pennsylvania, United States Warehouse #2: 585 Oak Ridge Rd, Hazleton Twp, Pennsylvania, United States Utah Manufacturing Unit #5: 2813 Wall Ave, Ogden, Utah, United States Warehouse #3: 155 South 1140 West, Building F, Ogden, Utah, United States Washington Manufacturing Unit #6: 350 N Pekin Rd, Woodland, Washington, United States |
Product Information
| Products: | The bespoke, high-volume production of pet food based on client requirements. |
| Services: | Distribution – Sourcing food items from producers and selling them to businesses and retail customers. Logistics – Transportation of food items to retail and wholesale buyers. Warehousing – Storage and handling of food items. Packing to meet order size. |
| Market Reach: | United States |
Financial Information
| Revenue: | USD $506 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | USD $421,833 (i.e., USD $506 million / 1200 employees = USD $421,833 – estimated based on the number of employees and revenue from ZoomInfo) |
Did You Know?
The global pet food market was valued at USD $99.1 billion in 2022 and is anticipated to exhibit a compound annual growth (CAGR) of 4.3% from 2023 to 2030. The demand for the product is expected to be driven by a growing consumer inclination toward adopting pets, along with their rising concerns regarding their pet’s health.
Target/Seller Overview: Alphia
Alphia was formed through the merger of American Nutrition, Inc. and C.J. Foods, Inc. in 2020 to create a national pet food manufacturing platform. It manufactures more than one billion pounds of dry pet foods and treats annually for leading pet food brands and retailers. The company has six manufacturing facilities and three warehouses across the United States. The company also has two subsidiaries, LANI, an ingredient milling solution company, and Veracity, a warehousing and logistics provider. Combined, Alphia offers its partners complete farm-to-bowl custom solutions.
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Explore Your Options NowBuyer/Acquirer: PAI Partners
Company Information
| Buyer: | PAI Partners |
| Website: | paipartners.com |
| Founded: | 1998 |
| Industry: | Private Equity Firm |
| Type: | Partnership |
| Employees: | 264 (Self-published on LinkedIn) |
| Total Funding: | USD $27.8 billion |
| Locations: | Head Office: 232 rue de Rivoli, Paris, France Germany Regional Office #1: 5 D Lenbachplatz, Munich, Bavaria, Germany Italy Regional Office #2: 3 Via Brera, Milan, Lombardy, Italy Luxembourg Regional Office #3: 43-45 allee Scheffer, Luxembourg Spain Regional Office #4: 41 Calle de Velazquez, Madrid, Spain Sweden Regional Office #5: 12 Kungstradgardsgatan, Stockholm, Stockholm County, Sweden United Kingdom Regional Office #6: 12 St James’s Square, London, United Kingdom United States Regional Office #7: 1325 Avenue of the Americas, New York, United States |
Investment Areas
| Target Type: | Private Companies |
| Investment Strategy: | Leveraged Buyouts (LBO) |
| Sector: | Business Services Food and Consumer General Industries Healthcare |
| Market Reach: | Europe – Austria, Belgium, Denmark, France, Germany, Italy, United Kingdom North America – United States |
Financial Information
| Revenue: N/A |
Buyer/Acquirer Overview: PAI Partners
PAI Partners, a French private equity firm, is headquartered in Paris with seven regional offices in other European countries and the United States. PAI manages USD $27.8 billion of dedicated buyout funds and has completed 65 LBO transactions representing over USD $52 billion in transaction value. The firm has developed expertise in the business services, foods, consumer goods, general industries, and healthcare sectors.
Previous Acquisitions by PAI Partners (Partial List)
- The Looping Group (2023) – A leading pan-European operator of local and regional leisure parks based in France.
- NovaTaste (2023) – A provider of value-added savory ingredients and blends to improve taste and texture headquartered in Austria.
- La Compagnie des Desserts (2023) – A French premium frozen desserts supplier.
- Theramex (2022) – A global specialty pharmaceutical company focused on women’s health based in the United Kingdom.
- HKA (2022) – A UK-based global consultancy in risk mitigation, dispute resolution, expert witness, and litigation support services.
- Uvesco (2022) – A leading pan-European ophthalmology clinics platform based in Germany.
- Tropicana Brand Group (2022) – A U.S.-based company with a portfolio of juice brands, including Tropicana, Naked, KeVita, and others.
Sources
- Company Profile
- Other Sources
- Unconfirmed Sources
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