Growth Capital • Healthcare Services

Convergent Capital Partners, Quabbin Capital, L Catterton Partners and Caltius Structured Capital Invest In Healthy Pet

On October 1, 2001, growth capital firm Convergent Capital Partners, asset manager Quabbin Capital, growth capital firm L Catterton Partners and mezzanine finance firm Caltius Structured Capital invested in healthcare services company Healthy Pet

Investment Context
  • This is Convergent Capital Partners’ 1st, Quabbin Capital’s 1st, L Catterton Partners’ 1st and Caltius Structured Capital’s 2nd transaction in the Healthcare Services sector.
  • This is Convergent Capital Partners’ 8th, Quabbin Capital’s 3rd, L Catterton Partners’ 12th and Caltius Structured Capital’s 14th transaction in the United States.
  • This is Convergent Capital Partners’ 1st, Quabbin Capital’s 1st, L Catterton Partners’ 1st and Caltius Structured Capital’s 2nd transaction in Connecticut.
Investment Fate
  • Healthy Pet was sold to a publicly-traded strategic buyer in 2007 for 153M USD.

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Investment Summary

Date October 1, 2001
Target Healthy Pet
Sector Healthcare Services
Investor(s) Convergent Capital Partners
Quabbin Capital
L Catterton Partners
Caltius Structured Capital
Deal Type Growth Capital

Target Company

Healthy Pet

Shelton, Connecticut, United States
Healthy Pet Corp. is an operator of veterinary hospitals in the eastern United States.
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Investors Overview 4

Investor
DESCRIPTION

Convergent Capital is a private investment firm that provides growth and debenture financing to late-stage growth companies. Convergent prefers to commit $3 to $12 million per transaction in businesses with at least $10 million in revenues. Convergent is a generalist investor and will consider businesses in a wide range of industries. Investment funds are typically used to assist growth, but the firm can also structure investments around buyouts, recapitalizations, consolidations, and add-on acquisitions. Convergent is licensed as a SBIC. Convergent Capital was formed in 1999 and is based in Minneapolis, Minnesota.


Deal Context for Investor #
Overall 8 of 62
Sector: Healthcare Services 1 of 4
Type: Growth Capital 7 of 16
State: Connecticut 1 of 1
Country: United States 8 of 62
Year: 2001 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-03-01 Sensory

Santa Clara, California, United States

Sensory, Inc. creates a safer and superior UX through vision and voice technologies. Sensory’s technologies are widely deployed in consumer electronics applications including mobile phones, automotive, wearables, toys, IoT and various home electronics. With its TrulyHandsfree™ voice control, Sensory has set the standard for mobile handset platforms’ ultra-low power “always listening” touchless control. To date, Sensory’s technologies have shipped in over a billion units of leading consumer products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-06-01 Restaurant Technologies

Mendota Heights, Minnesota, United States

Restaurant Technologies is a foodservice industry partner, serving more than 32,000 quick-service and full-service restaurant chains, independent restaurants, grocery delis, hotels, casinos, universities, and hospitals nationwide. The company helps make foodservice operations safer, smarter, and more efficient through cooking oil and hood and flue management solutions. It has a long history of sustainability, working with partners to provide used cooking oil as input into renewable diesel and biodiesel, creating an ESG-friendly process of recycled used cooking oil for its customers. Restaurant Technologies was formed in 1996 and is based in Mendota Heights, Minnesota.

Buy -
Investor

Quabbin Capital

Boston, Massachusetts, United States

Investor Investor


Category Asset Manager
Founded 1974
Size Small
Type Sector Agnostic
DESCRIPTION

Quabbin Capital is a private investment group focused on alternative asset investments in the US and abroad. Quabbin looks for opportunities in private equity, mezzanine loans, venture capital, energy, real estate, and hedge funds. Within private equity, Quabbin pursues equity and junior capital investments in established, profitable manufacturing or business service companies with revenues of $10 to $50 million. Quabbin Capital was formed in 1974 and is based in Boston, Massachusetts.


Deal Context for Investor #
Overall 3 of 9
Sector: Healthcare Services 1 of 1
Type: Growth Capital 1 of 2
State: Connecticut 1 of 1
Country: United States 3 of 9
Year: 2001 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1999-09-01 The ADS Group

Plymouth, Minnesota, United States

The ADS Group is a provider of outsourced CD-ROM manufacturing, diskette duplication and related fulfillment services. These services include, CD mastering, replication, pre-press design, printing, packaging, distribution and fulfillment services; and diskette duplication and fulfillment services. ADS specializes in servicing software professionals who require short lead times and maximum flexibility from their service providers. CD-ROM disks are used for data, software, games and promotional applications. The ADS Group was founded in 1989 and is based in Plymouth, Minnesota.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-23 Lofland Acquisition

Houston, Texas, United States

Lofland Acquisition, Inc. is a distributor of steel rebar and other construction related products.

Sell $47M
Investor

L Catterton Partners

Greenwich, Connecticut, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1989
PE ASSETS 37.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

L Catterton is a private equity firm that targets investments in consumer-related companies located throughout North America. L Catterton looks for businesses with identifiable brands and operating in 'defensible and extensible' positions within growth industry segments. Specific sectors of interest include branded consumables, food/beverages, consumer services, restaurants, media and marketing, household durables, specialty retail, mass merchant retail, and luxury/apparel. Prospective transactions include management buyouts, recapitalizations, turnarounds, and growth financings. L Catterton was formed in 1990 and is based in Greenwich, Connecticut.


Deal Context for Investor #
Overall 12 of 223
Sector: Healthcare Services 1 of 10
Type: Growth Capital 3 of 91
State: Connecticut 1 of 7
Country: United States 12 of 134
Year: 2001 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-01-01 SuperGraphics

Seattle, Washington, United States

SuperGraphics, Inc. is a provider of digitally printed vehicle graphics.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2001-10-30 Odwalla

Dinuba, California, United States

Odwalla is a producer of all-natural, super-premium juices and smoothies, dairy-free shakes, natural spring water, and food bars serving thousands of accounts coast to coast. Odwalla was formed in 1980 and is based in Dinuba, 93618, California.

Sell $181M
Investor

Caltius Structured Capital

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1997
PE ASSETS 1.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Caltius Structured Capital is an investment firm focused on providing junior debt and minority equity to lower middle-market companies throughout North America. The Firm looks to invest between $7 to $50 million in companies with revenues of $15 to $250 million. The Firm pursues a variety of transaction types, including management buyouts, growth financings, and acquisition financings. Sectors of interest include business services, consumer products/services, healthcare services, manufacturing, tech-enabled services, and staffing. Caltius Structured Capital was formed in 1997 and is based in Los Angeles, California.


Deal Context for Investor #
Overall 14 of 53
Sector: Healthcare Services 2 of 5
Type: Growth Capital 1 of 12
State: Connecticut 2 of 2
Country: United States 14 of 53
Year: 2001 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-08-01 Nu Vision Manufacturing

Springfield, Massachusetts, United States

Nu Vision Manufacturing LLC serves the electronic manufacturing services (EMS) market for high complexity/low volume printed circuit board (PCB) production. The company is a contract manufacturer to original equipment manufacturers (OEM) in a wide variety of industries including defense, general industrial, computer, medical and communication.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-12-01 Dickinson Frozen Foods

Eagle, Idaho, United States

Dickinson Frozen Foods, Inc. is a provider of frozen roasted potatoes, onions and vegetable blends to large industrial food processors and food service companies.

Buy -