Investors to Provide Additional Capital Investment of $50 Million
IRVING, TX – January 8, 2019 – Animal Supply Company (ASC or the Company), the national leader in pet food and supplies distribution, is pleased to announce that an agreement in principle has been reached with a group of institutional investors to acquire a majority share of the common equity of the Company.
The institutional investors (along with certain ASC existing lenders) have already injected new capital into the business. Upon the closing of the transaction (after negotiation of definitive documents), the institutional investors will provide further capital investment, resulting in the infusion of over $50 million of cash into the Company. This additional financial support will allow ASC to substantially reduce its debt, execute the Company’s strategic plan for future growth, and help its retail customers and brand partners better compete in a digital world. The transaction is expected to close in the first quarter of 2019.
ASC shares a passion for animals through trusted partnerships that connect the brands and customers they serve to those who love pets. The Company has more than 465 brand partners and over 7,000 retail customers operating more than 15,000 retail outlets. It operates 21 facilities, of which 10 offer eFulfillment, and employs approximately 1,300 people.
“This agreement demonstrates the Company’s commitment to its vendors, customers, employees and stakeholders,” said Don McIntyre, Chief Executive Officer of Animal Supply Company. “The agreement we reached reflects confidence in the business and ASC looks forward to serving our vendors and customers under new ownership, with the financial support of a stronger balance sheet and substantial new capital from our new equity owners.”
Randy Reber, Chairman of the Board and one of the original founders of the Company, added, “Animal Supply Company has always focused on the success of pet specialty retailers. This can only be accomplished through a close relationship with vendors who provide innovative products that meet the needs of the pet specialty channel. The Halifax Group, and other owners such as myself, will remain partial owners of the business and we are pleased the Company will now have additional capital to continue both its growth and its support of retailers and vendors.”