Zuke’s

Zuke’s - Case Study

< All case studies

Overview

  • Zuke’s is a leading independent provider of branded companion animal treats.
  • The company is a pioneer in healthy, semi-moist and fortified treats, which are manufactured domestically using premium grade ingredients sourced predominantly in North America.
  • Zuke’s core values include a commitment to quality, boasting a near flawless production track record, having never had a recall.
  • The company became the go-to brand for a comprehensive treat solution in pet specialty, among both major chains and independents.

Situation

  •  Zuke’s received an investment from private equity firm Encore Consumer Capital in 2009, enabling the company to increase spend in product development, sales, and marketing.
  • Since receiving the private equity investment, Zuke’s experienced rapid growth having increased doors, SKUs, facings and turns across its retailer platform.
  • Ownership recognized that Zuke’s had a clear path to becoming a $100 million brand, but had several key hurdles to achieving that goal.
  • The inflection point of the company proved to be good timing to pursue a transaction, providing historical growth while leaving a road map to future growth.

Cascadia Process

  • Cascadia ran a limited strategic process in order to solicit terms from the most likely acquirers while limiting the company’s exposure.
  • Given the institutional ownership and return objectives, the valuation threshold was aggressive, quickly narrowing the field to the most bullish candidates.
  • Cascadia understood the demand for the company and used that to run a two-step auction process that required all interested parties conduct full business due diligence and comment on definitive documents prior to exclusivity.
  • Through its process, Zuke’s received multiple bids which were in excess of the projected market clearing price, ultimately choosing to partner with Nestle Purina PetCare.
Trust. Experience. Independence. Results.

We Cover More Ground

Pacific Northwest. National. And Beyond.


View deals map >

In the news:

Close