Source: Crain’s Chicago Business, By Mark Weinraub
Private equity firm Granite Creek Capital Partners is buying Global Animal Products, a maker of feed additives for cows and chickens, as part of its push into the agribusiness sector.
“We continue to have great enthusiasm about the space,” Granite Creek partner Jim Clark told Crain’s in an interview. “We think there are a lot of interesting small and midsize businesses in those subsectors that are offering innovative products and services that can be highly relevant to the large integrated farmers and livestock producers.”
The deal for a majority stake in Global Animal Products includes more than $20 million in debt and equity financing and helps support the company’s move to an employee-owned business as the original founder steps away.
Amarillo, Texas,-based Global Animal Products has customers in the U.S., Mexico, Australia, South Africa, Costa Rica and Brazil. “Anywhere there are beef livestock herds, they are a relevant product,” Clark said. “We viewed that as a great foundation and something which we could build further upon as they build up more market share and introduce additional novel products.”
Global Animal Products Chief Executive Officer Ben Tarr will remain in his role. Company founder Ken Ridenour will serve on the board of directors but step back from active management.
As part of the deal, Granite Creek will periodically sell a portion of its stake to Global
Animal Products employees. Timing of the sales will depend on company performance,
Clark said.
The private-equity firm is focused on acquiring companies that are already generating revenue and have annual EBITDA of less than $10 million a year. Clark said the agribusiness industry is a niche that does not have the kind of attention from private-equity sectors of the economy like energy and health care do.
Granite Creek’s current investments in the space include Moraine Farmland Partners, a fund it formed in 2020 with agribusiness executive Jim Zimmer that purchases and manages farmland in the Midwest, and NYP, a company it bought in 2023 that makes specialized bags and containers to transport plants and trees from farms to nurseries to homes.
The Chicago-based private equity firm also recently funded the acquisition of Diamond Animal Health through Veterinary Pharmaceutical Solutions, one of its portfolio companies it bought in 2020. Diamond researches and manufactures animal vaccines and drugs.
Clark has said personal relationships are key to doing agribusiness deals since the sector is dominated by family-owned businesses. The Global Animal Products was no exception, as Granite Creek operating partner Mike Ray has known Ridenour since college.