MSCP bets nutritional supplements are the next big thing in pet care

Morgan Stanley Capital Partners is expected to announce later today that it has acquired FoodScience, a producer of nutritional supplements for people and their pets, PE Hub is the first to report. The seller is Wind Point Partners, which bought FoodScience in 2021.

Headquartered in Williston, Vermont, FoodScience was founded in 1973 by the Orlandi family, who “had a passion for developing animal and human health solutions,” according to the company’s website. For people, FoodScience has brands, such as DaVinci, which markets supplements aimed at improving general health, including heart, hormone, digestive and immune system.

The fact that the company manufactures human supplements lends credibility to the pet offerings, which is where Stewart sees the bigger opportunity for growth.

“There is a well-documented trend of humanization of pets and increased attention from pet parents on their dog’s or cat’s health and wellness and quality of life,” said James Stewart, a managing director and co-head of consumer investing at MSCP.  “Pet parents are increasingly seeking clinically tested and science-based efficacious supplements, and that is leading to the acceleration of the best supplement players. The pet space exhibits fantastic, long-term secular growth.”

Supplements for pets lag market penetration compared with supplements for humans. “We think this market will grow even faster than the pet segment overall in the next five to 15 years.”

MSCP was looking for an asset in the pet supplement space for several years before finding FoodScience. “We reached out proactively to the current sponsor, and we were able to strike a bilateral deal,” Stewart said.

Sharon Rossi will continue as FoodScience chief executive.

MSCP is looking to scale FoodScience through organic growth and M&A. Geographically, Stewart said the company hopes to acquire anywhere in the US and also increase its presence internationally. In terms of products, FoodScience will acquire “respected and science-driven” brands that aid the health and wellness of pets.

“This market is highly fragmented with a very engaged consumer base that is increasingly looking for quality and brand reputation that they can trust,” he said.

History of exits

This deal represents the third time that MSCP has invested in the pet and animal health industry. Previously, the firm invested in Compana Pet Brands, formerly known as Manna Pro Products, a St Louis-based manufacturer and marketer of specialty pet care products that was bought by Carlyle in 2020.

MSCP previously owned Thrive Pet Healthcare, formerly known as Pathway Vet Alliance, an owner and operator of general practice, specialty and emergency veterinary hospitals throughout the US. The company was bought by TSG Consumer Partners.

During the ownership of these two companies, MSCP developed a network of industry executives and interacted with hundreds of veterinarians across the country, giving the firm insights on the specific areas where the pet health industry is moving in the future, the firm says.