Pestell Nutrition Acquires Origination O2D

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Acquisition expands Pestell Nutrition’s footprint, logistical capabilities and product portfolio

Wind Point Partners (“Wind Point”) and portfolio company Pestell Nutrition (“PN” or the “Company”) are pleased to announce that on December 20, 2019 PN acquired Origination O2D (“O2D”). O2D, founded in 1945 and headquartered in Maplewood, MN, operates as a value‐added distributor of animal feed ingredients and branded proprietary feed products across the Midwest and broader U.S.
The acquisition of O2D is highly strategic for PN, supporting numerous facets of the Company’s value creation and growth plan. O2D represents PN’s first U.S.-based acquisition and therefore an important step for the Company to pursue growth opportunities in the world’s largest animal feed market. In addition, O2D offers significant logistical advantages, with distribution capabilities across rail, river, and truck, creating opportunities to augment PN’s supply chain and improve its cost basis. O2D also augments PN’s existing product portfolio by adding branded proprietary products with actionable opportunities for continued customer penetration, cross sales, and international distribution.Jerry Vergeer, Pestell Nutrition CEO, commented, “O2D is a perfect fit with Pestell Nutrition. The acquisition helps us continue our strategic vision of building the leading provider of animal nutrition solutions and products across the U.S. and Canada. We believe O2D is poised for continued growth and look forward to partnering with the O2D team to further expand our combined business.”

Paul Peterson, Managing Director at Wind Point Partners, stated, “We are excited about the acquisition of O2D. The combined business provides compelling growth opportunities with a broader proprietary product portfolio as well as a more expansive geographic footprint. O2D will be an integral component in achieving our future initiatives, particularly as it relates to optimizing our product and sales mix as well as further penetrating the U.S. market.”

The acquisition of O2D continues Wind Point’s long history of partnering and working with entrepreneur-and family-owned businesses. O2D is the third acquisition for PN since Wind Point’s original investment in June 2018, following the August 2019 acquisition of Pro Ag products, a leading Canadian distributor of branded feed additive products, and the November 2019 acquisition of Premier Ag Resources, a value‐added distributor of specialty pet food ingredients and feed additives.

John Fallin, O2D’s CEO, commented, “We look forward to the combination of Pestell Nutrition and O2D as this transaction unlocks numerous opportunities to grow the platform and better serve our combined customer base. We believe Pestell Nutrition is the right fit for O2D and the formation of this partnership represents a meaningful step forward for the business and our entire team as we enter the next phase of growth.”
BMO Sponsor Finance led the debt financing for the transaction. Kirkland & Ellis LLP served as legal counsel to PN.

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