SANTA MONICA, CA — 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 company in December 2019.
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 former Chief Operating Officer Jeff Quinn.
The investment “will support Wet Noses’ manufacturing capacity expansion to serve the growing demand for natural and organic pet foods and treats,” according to a press release.
Financial terms of the deal were not disclosed.
More from the release:
Founded in 1998, Wet Noses has built an extremely loyal customer base thanks to its differentiated offering in branded pet treats and also now serves a growing list of private label and contract manufacturing partners. Over the past decade, the company has significantly increased its capacity with the inclusion of three human-grade baking lines at its Seattle facility and expanded its product line beyond treats to include foods such as baked kibble.
Evan Klebe, Managing Director at Beach Point, said: “We are excited to have Jasmine and Jeff rejoin the company and lead Wet Noses during its next phase of growth. 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.”
Robert Bergmann, Portfolio Manager at Beach Point, added: “We are thrilled to support Wet Noses’ growth during an inflection point in the pet food industry, where consumers, retailers and brand partners are all exhibiting rapidly growing demand for the company’s products including human-grade baked pet treats.”
Galligan said: “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. 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 $14.5 billion in AUM on behalf of institutional investors. Headquartered in Santa Monica, CA, the firm also has offices in New York, London, and Dublin. Beach Point Private Equity leverages Beach Point Capital Management’s industry expertise, network and shared resources to be a value-added partner for its private equity portfolio companies. Beach Point Private Equity seeks investments with capital requirements of $15-$150 million and currently has 10 portfolio companies.
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