MISSISSAUGA, ONTARIO – June 11, 2018. Dane Creek Capital Corp. (‘DCCC’ or the ‘Company’), the pet industry’s merchant bank, is pleased to announce it has acquired Spring Meadows Natural Pet Food (‘Spring Meadows’), a leading manufacturer of frozen raw pet food for dogs and cats. Spring Meadows is located in Saskatoon, Saskatchewan and sells its products via pet specialty retailers mainly in western Canada.
The purchase price represents 0.72 times trailing 12- months revenue. The purchase is an all cash transaction. No other terms were announced.
Founded in 2004 by farmers Brett Flahr and Regan Sloboshan, Spring Meadows recipes feature high quality whole ground animal, including meat, organ and bone, sourced predominantly through local farmers to create a fresh and healthy pet food. The product line includes pure protein meals with beef, chicken, fish, turkey, lamb, rabbit, and bison as well as mixed meals with added fruits and vegetables. Spring Meadows pet foods come in a variety of package sizes including bulk options and are prepared using a fine grind so as to appeal to owners of small dogs and cats as well as larger dogs. Flahr will continue on as President of Spring Meadows reporting to Mark Murakami, President of United Raw Pet Foods Inc., a subsidiary majority owned by DCCC.
The acquisition of Spring Meadows marks DCCC’s fourth acquisition of a Canadian raw pet food manufacturer in the last 12 months. In Q4-2017, DCCC acquired Mountain Dog Enterprises Inc. of Edmonton, Alberta; in Q1-2018, the Company acquired both Pets4Life and Naturawls Pet Products based in St. Thomas, Ontario. With the addition of Spring Meadows, DCCC now has manufacturing capability in three provinces. The Company believes more and more pet owners are moving their dogs and cats to a raw diet making it the fastest growing segment in the pet food industry. Recognizing that the demand for raw food is increasing, pet specialty retailers across Canada are increasing the amount of freezer space in their stores.
“We are delighted to be making this announcement,” said Glen Tennison, President & CFO of DCCC. “We are impressed by the quality and attention to detail Brett and his team have devoted to making a nutritious raw food which some retailers have said is the best in the business. We look forward to Brett’s involvement as a key leader on the DCCC team as we look to expand the reach of our raw pet food brands in support of pet specialty retailers across Canada.”
Traceability is a core feature of Spring Meadows’ raw meals which originally used meat from livestock raised by the founders. As demand outstripped supply, Flahr and his partner were able to leverage their relationships with local farms to sustain their ‘farm-to-bowl’ philosophy. DCCC believes traceability and vertical integration in the raw food category will become of increasing importance as blockchain technology reaches the pet food world. The Company has already begun moving towards applying blockchain to its pet consumables businesses, including its four core raw pet foods brands, three dehydrated treats brands, and Baie Run supplements brand. DCCC believes pet specialty retailers and pet owners will increasingly demand transparency in all the products they feed their pets and blockchain technology will give the Company a significant competitive advantage over others in the industry.
“I am very pleased to be joining the Dane Creek team,” said Flahr. “I believe the model they have developed puts them at the forefront of the industry and I look forward to working with them to grow Spring Meadows as a leading raw pet food brand across Canada.”
Glen Tennison, President & CFO
Dane Creek Capital Corp.
Amanda Zaharchuk, VP Marketing & Communications
Dane Creek Capital Corp.