Arbor Investments (“Arbor”), a specialized private equity firm focused exclusively on investing in food, beverage and related industries is pleased to announce that its Fund IV portfolio company, Red Collar Pet Foods (“Red Collar” or the “Company”), has completed the sale of its Miami, Oklahoma, pet treat manufacturing facility to Nestlé S.A.’s (SW: NESN) Purina PetCare division (“Nestlé Purina”).
Since 2022, Red Collar has co-manufactured several soft chew pet treats for Nestlé Purina under the Purina treats portfolio and Zuke’s brands.
Nestlé Purina’s decision to purchase Red Collar’s Miami facility was based on the facility and its employees’ capabilities and commitment to quality and safety. The sale includes the transfer of approximately 80 employees involved in the operations.
“As a customer of Red Collar, Nestlé Purina recognized the quality of our plants, operations, and people,” said Arbor Senior Operating Partner, Tim Fallon. “For more than 25 years, they have produced some of the highest quality, nutritious treats in the industry and we’re gratified to know that our associates will join a world-class organization and continue that tradition.”
This transaction is in addition to earlier divestures of Red Collar Pet Foods’ dry pet food manufacturing network to Colgate’s Hill’s Pet Nutrition, announced September 2022.
“We’re thrilled to complete this next divestiture at Red Collar, thanks to the collective efforts of the Red Collar and Arbor teams,” said Arbor Investment Partner, Chris Tuffin. “The interest we received in the platform is a testament to the outstanding business our teams built.”
Gross proceeds resulting from the various Red Collar divestitures to date exceed $840 million. While Red Collar has divested a significant majority of the platform, it retains the Red Collar brand, continues to operate its Joplin, Missouri, treats business, and administers various corporate functions in connection with the divestitures.
Kirkland & Ellis LLP served as legal counsel to Red Collar Pet Foods and Centerview Partners LLC served as financial advisor to Red Collar Pet Foods and Arbor Investments on the transaction.
