Is Alphia the perfect fit for PAI Partners?
The new owner of one of the biggest pet food manufacturers in the US shares their plans for the firm with GlobalPETS.
In August, private equity (PE) firm PAI Partners acquired Alphia from J. H. Whitney & Company. While the exact amount of the deal was not disclosed, some sources place it over $1 billion (€920M).
Winston Song, Partner and Consumer Lead in the US at PAI Partners, speaks with GlobalPETS after the operation officially closed in October.
Scaling the platform
Song noted that PAI looks forward to working with Alphia’s CEO and President David McClain and his “mission-driven team” to grow and scale the platform.
PAI sees Alphia’s growth potential through investing in new manufacturing capabilities and expanding capacity. “Alphia is already capable of handling significant complexity and innovation for our branded and private label customers,” he states.
Moving forward, PAI believes they can extend the Alphia franchise into other forms of pet food and areas of the pet food supply chain.
The perfect pet food partner
“Alphia can give us broad insight into the category in terms of trends, brands and products, which PAI can use to further deploy capital in the space,” adds the Consumer Lead. At the same time, he names Alphia as the “perfect partner” for PAI when it comes to pet food.
“Alphia can give us broad insight into the category in terms of trends, brands and products, which PAI can use to further deploy capital in the space.”
To keep the pet food manufacturer as a leading business, Song notes the private equity firm plans to continue delivering “high-quality, innovative and safe products to customers and to grow the business into other areas of the pet food supply chain.”
Growing stake
Like many in recent years, the private equity firm has taken note of the pet industry. “PAI is excited by the pet category, which has gained momentum in recent years and will continue to be a high-growth category due to positive industry tailwinds,” Song expressed.
He added that the PE firm believes Alphia is in “an ideal position to capitalize on new product launches and innovations alongside brands.”
The firm aims to build “a larger and more value-added platform in the pet category” with further mergers and acquisitions.
PAI has vast experience in pet sector investments and was behind the sale of Royal Canin to Mars and Diana Pet Food to Symrise, among others.
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