Merchant bank with pet industry focus to become first company in Canada
with multiple manufacturing interests in growing
frozen raw pet food category
the ‘Company’), a merchant bank with a focus on the pet industry, is pleased to
announce it has agreed to acquire 100% of Mountain Dog Enterprises Inc. (‘Mountain
Dog’), a leading manufacturer of frozen raw pet food based in Edmonton, Alberta; up to
49% of Totally Raw Natural Dog Food Inc., a leading manufacturer of frozen raw pet
food based in Dartmouth, Nova Scotia; and 40% of a leading manufacturer of frozen
raw pet food based in southern Ontario. The combined transactions will make Dane
Creek the leader in Canada in the rapidly growing frozen raw pet food category and the
only corporation with manufacturing interests in multiple provinces.
the only manufacturer in the country with HACCP certification. Founded in 2000 by
Dean Ricard, its products are manufactured out of a single facility in Edmonton, Alberta
and sold mainly through pet specialty retailers throughout Canada. Ricard will continue
to act as President and CEO of Mountain Dog post-completion. The purchase price
represents approximately 0.5 times Mountain Dog’s expected 2017 revenue. The
transaction is subject to customary due diligence and scheduled to close before the end
of September. The acquisition will mark DCCC’s first investment in the Province of
Alberta.
Totally Raw is the leading brand of frozen raw pet food in Atlantic Canada with a unique
business model that includes its own retail store fronts. Founded in 2003 by Karen
Campbell and Doug Malloy, its products are manufactured out of a single facility in
Burnside, Nova Scotia and sold through both pet specialty retailers and its stores.
Totally Raw also recently began distributing its product in Quebec and Ontario.
Campbell will continue to act as President of Totally Raw and Malloy will act as Director
of Operations. The transaction is subject to customary due diligence and is expected to
close on or before the end of October. No other details were announced. The deal will
mark the Company’s fourth direct investment in the Province of Nova Scotia.
DCCC’s third investment is in one of the fastest growing frozen raw pet food
manufacturers in Canada and a leading brand in southern Ontario. Its products are
manufactured out of a single facility and sold mainly through pet specialty retailers. The
transaction is subject to customary due diligence and is expected to close on or before
the end of October. The company expects to announce further details in the coming
weeks. The deal will mark DCCC’s second investment in the Province of Ontario.
With the closing of these transactions DCCC will be the first company in Canada with
interests in multiple frozen raw pet food manufacturers, a position the Company intends
to strengthen through further acquisitions and/or investments in the frozen raw category
in both Canada and the United States over the coming months. Combined revenues for
all three companies in 2017 are projected to exceed $5.4 million. DCCC believes given
the nature of the frozen raw category, which requires that product remain frozen during
transportation, changes in the alignment of food companies in the mass grocery and pet
specialty retail category, and the concentration in pet specialty retail ownership and
alterations in traditional distribution models, access to a national network of
manufacturing facilities with co-packing potential for all of its brands will give it and its
portfolio companies in the space a strategic advantage over other market participants.
Its investments in the frozen raw category will be held via a wholly owned subsidiary.
'We are very pleased to be making this announcement,' said Glen Tennison, President
and CFO of DCCC. 'This is without a doubt the biggest announcement we have made to
date and demonstrates our commitment to supporting innovators in the companion
animal industry. We believe our investment model will allow them to continue to grow
their businesses to the benefit of all involved. These transactions also speak to our
commitment to investing in newer, rapidly growing categories in the companion animal
sector which we believe are well placed to take advantage of current trends in pet
ownership.'
About Dane Creek Capital Corp.
With over 30 years of experience in the pet industry and an extensive network of
industry professionals, we offer valuable financial and management support to up-and-coming companies in the companion animal sector through selective, strategic
investments. Our investment horizon is long-term taking into account current trends and
changes in pet owner demographics with a current focus on opportunities in pet food
products sourced from sustainable ingredients, alternative models for veterinary care,
biotechnology, pet insurance, pet hotels, and pet-related technological applications for
pet owners.
For more information visit www.danecreekcap.com.
Contacts:
Chairman & CEO, Dane Creek Capital Corp.
emw@danecreekcap.com
1 (905) 581-7467
Glen Tennison
President & CFO, Dane Creek Capital Corp.
gt@danecreekcap.com
1 (905) 581-7412
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