US manufacturer of “humanised” dog treats Three Dog Bakery has been acquired by private-equity firm Topspin Consumer Partners.
The investor has bought the consumer product division of the company that sells to traditional and online retailers.
Financial terms of the deal were not disclosed.
The Kansas City, Missouri-based Three Dog Bakery’s portfolio revolves around dog treats inspired by snack products, such as Birthday Celebration Cake, Quiche Bites the Birthday Confetti Lick’n Crunch! cookies, which resemble Oreos.
Three Dog Bakery has its own stores around the US.
“We see enormous opportunity in the pet consumables sector, and are excited to partner with Three Dog Bakery, whose innovative products have generated an avid consumer following,” said Leigh Randall, managing partner at Topspin. “Three Dog Bakery’s management team has successfully scaled the company through its product launches, established customer relationships, and thoughtful distribution expansion, and we look forward to partnering with the team to enter new categories and provide even more pet owners with unique, high-quality treats for their dogs.”
The Mamaroneck, New York-based private equity firm says it invests in "fast-growing middle-market" businesses in sectors including personal care, beauty, food and pet. It targets US-based enterprises with an annual revenue below $100m, and EBITDA of between $3m and $15m.
Its investments include health-and-wellness company Bear Down Brands, housewares supplier Polder and Sport Pet Designs, a private-label pet product manufacturer.
“Topspin has extensive experience building consumer brands and a strong network within the pet sector, making them the perfect partner as we enter our next phase of growth,” said Jerry Dear, the president of Three Dog Bakery. “Pet parents are becoming increasingly aware of the importance of providing their best furry friends with more wholesome options, and we are confident that our unique product offering, which directly taps into pet humanisation trends, is changing the way people think of dog treats.”
Elsewhere in the US last week, Ohio-based BrightPet Nutrition acquired Raw Advantage Processing, a family-owned frozen raw pet food manufacturer.
Further afield in India, the US-headquartered private-equity firm L Catterton acquired a minority stake in Indian pet food Drools Pet Food Private Limited.
The move marked L Catterton’s first foray into what it described as a “burgeoning” pet-food market in India.
In May, it was reported Alphia, a US pet-food manufacturer, was exploring future options including a potential sale of the business.
News agency Reuters, quoting unnamed “people familiar with the matter” said the private equity-owned white-label manufacturer is working with investment bank Goldman Sachs on a potential deal that could value the company at more than $1bn.
In March, US pet-food start-up Bundle x Joy had closed a $1m seed round, led by an accelerator in which pet-food giant Mars is a partner.
