Houlihan Lokey Advises PAI Partners

Houlihan Lokey is pleased to announce that PAI Partners (PAI) has acquired Alphia, Inc., from J.H. Whitney Capital Partners (J.H. Whitney). The transaction closed on October 2, 2023.

Headquartered in Denver, Alphia is a leading national manufacturer of pet food in the U.S., manufacturing more than 1 billion pounds of dry pet food and treats annually on behalf of leading pet food brands and retailers. Alphia also provides milling, R&D, innovation, warehousing, transportation, and distribution services. The company has six manufacturing facilities across the U.S. and is the parent company of LANI, an ingredient milling solutions company, and Veracity, a warehousing and logistics provider. Combined, Alphia offers its partners complete farm-to-bowl custom solutions.

J.H. Whitney acquired Alphia’s predecessor, C.J. Foods, Inc., in 2014. Alphia was formed through the merger of American Nutrition, Inc., and C.J. Foods, Inc., in 2020 to create a national pet food manufacturing platform, delivering best-in-class food safety and unparalleled value for its customers.

This transaction underlines PAI’s expertise in the food and consumer sector and its particular experience in pet food and contract manufacturing, with representative investments in Royal Canin, Provimi, Diana Pet Food, and Refresco. With the support of PAI, Alphia will seek to accelerate further North American growth, both organically and through acquisitions.

PAI Partners is a pre-eminent private equity firm investing in market-leading companies across the globe. It manages c. €25 billion of dedicated buyout funds and, since 1994, has completed 100 investments in 12 countries, representing over €70 billion in transaction value. PAI has built an outstanding track record through partnering with ambitious management teams where its unique perspective, unrivalled sector experience, and long-term vision enable companies to pursue their full potential – and push beyond.

J.H. Whitney, established in 1946 by the industrialist and philanthropist John Hay “Jock” Whitney, was one of the first U.S. private equity firms and is often credited with pioneering the development of the private equity industry. Today, J.H. Whitney remains privately owned by its investing professionals, and its main activity is to provide private equity capital to small and middle-market companies with strong growth prospects in a number of industries, including consumer, healthcare, and specialty manufacturing. The company’s investors include leading foundations, universities, pension funds, and other institutions.

Houlihan Lokey served as the financial advisor to PAI with respect to the transaction. This deal represents another successful transaction for Houlihan Lokey in the consumer, food, and retail space.