US-based freeze-dried food producer Thrive Foods has recently acquired the Canadian pet food company Canature for an undisclosed fee.
As part of the agreement, Thrive Foods will acquire a freeze-drying facility located near Vancouver, Canada. Additionally, the deal includes obtaining “a core competency in front-end wet processing” from Canature.
Established in 2010 and based in Langley, British Columbia, Canature specializes in the production of freeze-dried pet food, pet treats, and ingredients, operating under the brand names NutriBites, UBite, and Hoopla.
Thrive Foods produces freeze-dried items such as fruits, vegetables, and pet food. The company is supported by Entrepreneurial Equity Partners (E2P), a private-equity firm based in Chicago that concentrates on the Consumer Packaged Goods (CPG) industry. Additionally, it receives backing from Mubadala Capital, the asset management subsidiary of Mubadala Investment Company.
The company operates facilities in California, Utah, New York, and Wisconsin, along with locations in Germany and Peru.
Gary Xu, the founder and CEO of Canature, said, “We have long admired Thrive’s success in the freeze-dried industry and believe significant value and synergy will be generated by combining the capabilities of our teams.
“E2P and Mubadala Capital have a successful history of partnering with family-held businesses and entrepreneurs and we believe they will provide us with the necessary support and expertise to achieve Canature’s next phase of growth within Thrive.”
Steve Palmer, CEO of Thrive Foods, stated that the agreement would “enhance our capacities in the pet food sector, bringing in a multitude of new customers and channels.”
He added, “Canature’s focus on the pet space makes this a transformative move for Thrive.”
Ryan Schweet, E2P partner said, “This partnership with Gary Xu and his team represents a highly strategic opportunity that will better enable us to service growing global demand for freeze-dried pet products.”
This acquisition represents the third transaction for Thrive Foods following the initial merger of Thrive Foods and Mercer Foods in December 2021.
In June, Thrive Foods acquired Groneweg Group, also recognized as Freeze-Dry Foods, a worldwide producer and distributor of freeze- and air-dried ingredients.
Meanwhile, earlier this year, E2P made two investments. In July, the private-equity firm acquired the baked goods group MBC Companies without disclosing financial details. Preceding that, it expanded its portfolio by adding Canadian garlic bread producer Furlani Foods.
