This is a story about how PricewaterhouseCoopers Corporate Finance LLC (“PwC Corporate Finance”) facilitated an acquisition between Pet Food Express and Rainier Partners, an ideal partner and cultural match.
Chapter 1 Setting the scene
Pet Food Express is California’s long standing and trusted independent pet retailer. In 1980, Pet Food Express was founded by Michael Levy who later brought in Mark Witriol as an equal partner. Their aspiration was to revolutionize the pet industry through an offering of quality pet products and services. Notably the company has also given back to the community through their ongoing support of local shelters and charities.
The retailer has enjoyed significant growth and success for over 40 years and in 2021 the company was ready to welcome a long-term partner.
Chapter 2 How we helped
PwC Corporate Finance was selected as the exclusive sell-side advisor in January 2021. In addition to facilitating conversations with various buyers, we supported the Company by coordinating all internal and external due diligence work streams for the sale process.
Finding the right partner, one who understood the core purpose of Pet Food Express, was of paramount importance for Michael Levy, CEO and Founder of Pet Food Express. Leveraging our previous experience and reach, the PwC Corporate Finance team identified Rainier Partners (a new private equity investor) as a strong potential buyer. We understood that the retailer’s robust sales growth, strong margin profile and leading reputation as a independent pet retailer in the state of California; would be highly attractive for Rainier Partners. PwC Corporate Finance successfully navigated various shareholder demands while delivering a deal value that exceeded the sellers' expectations.
“It was a privilege to work with Michael, Mark and the entire Pet Food Express team on the sale to Rainier Partners. It was a terrific outcome for PFE and they've found a great, long-term partner to help grow the business in the years to come. This transaction represents PwC Corporate Finance's 13th transaction in the pet space over the past few years. It remains an important area of focus for our franchise, globally.”
“After 40 years of growing a retail business from the ground up without any investment, it was a totally new experience for me to look for an investment and get to a close. I have so relied on Trip, Jonathan and the entire PwC Corporate Finance team to get us to the finish line, and most importantly, with the right Private Equity partner! I am staying on for the future growth of my company, and looking forward to executing that with Rainier Partners. The PwC Corporate Finance team have helped us navigate so many intricacies of the process as well as come to the right deal formula for my business partner and me. I need to recognize the heavy lifting they did to get us there. Overall, I trust the integrity and work ethic of the PwC Corporate Finance team and could not imagine getting this done without them!”
Chapter 3 Making a difference
In addition to achieving a successful outcome for all stakeholders, PwC Corporate Finance was able to find a buyer that shared a strong cultural fit with the founders of Pet Food Express. As part of the deal terms, Michael remained with the company in his current role as the CEO and maintained a minority equity stake in the company. We expect the new partnership to spark growth for Pet Food Express and enable the company to accelerate its growth aspirations beyond California.
*Testimonials may not be representative of the experience of other customers. Testimonials are no guarantee of future performance or success.
PricewaterhouseCoopers Corporate Finance LLC (“PwC Corporate Finance”) is owned by PricewaterhouseCoopers LLP, a member firm of the PricewaterhouseCoopers Network, and is a member of FINRA and SIPC. PwC Corporate Finance is not engaged in the practice of public accountancy.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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