Vestar Capital Partners, a U.S. middle-market private equity firm, has agreed to make a majority investment in PetHonesty, a manufacturer of premium pet health products including pet supplements. PetHonesty co-founders Ben and Camille Arneberg will retain a significant minority stake in the company, and Arneberg will continue to serve as CEO. Terms of the transaction were not disclosed.
Founded in 2018, PetHonesty’s products are formulated to help address a range of common pet ailments, including mobility, digestion and allergies, providing a healthy supplement to traditional pet diets. Based in Austin, Texas, with a second office in New York, the company sells its products direct to consumers via its website as well as through partners such as Amazon and Chewy.
“Our vision was to create the most trusted pet health company that empowers pet owners to offer their pets healthier and higher quality lives, and our partnership with Vestar is the next step in that journey,” Arneberg said. “We have been fortunate to find the right partner in Vestar, which remains committed to our business strategy and will help provide the financial backing, industry relationships and category expertise needed to build on our momentum.”
In conjunction with Vestar’s investment, Jeffrey Ansell, a Vestar senior advisor and 35-plus year consumer industry veteran, will join the PetHonesty board as Chairman. Earlier in his career, Ansell was a Procter & Gamble (P&G) executive for 25 years, the last seven of those as president of the Iams company, following P&G’s $2.3 billion acquisition in 1999. Ansell currently serves as Chairman, or member of the Board, for several other Vestar portfolio companies.
“PetHonesty is a fast-growing company that has built a passionate following of pet-loving consumers, and we’re excited to partner with Ben and the entire team as the Company builds on its success,” said Winston Song, managing director and co-head of consumer at Vestar. “Pet parents have shown they are deeply committed to purchasing premium products, and PetHonesty is well positioned as the pet humanization trend and pet ownership continues to grow. We look forward to leveraging our consumer and pet category experience to help PetHonesty expand its brand and reach new customers.”
Vestar has deep experience in pet food and the broader better-for-you (BFY) food industry, officials said. The firm previously owned Big Heart Pet Brands, whose products include Meow Mix, Milk-Bone and Natural Balance. Some of Vestar’s current BFY food investments include Dr. Praeger’s Sensible Foods, a manufacturer of better-for-you plant-based foods; Simple Mills, a better-for-you cracker, cookie and baking mix brand in the natural and organic channel; and Presence Marketing, a national sales broker dedicated exclusively to representing natural and organic food, beverage and personal care brands.
Kirkland & Ellis LLP served as legal counsel and William Blair acted as financial advisor to Vestar. Egan Nelson LLP served as legal counsel and Lincoln International acted as financial advisor to PetHonesty.