SANTA MONICA, CALIF. — Investment firm Beach Point Capital Management has acquired a majority stake in Wet Noses, a manufacturer of natural, organic and human-grade pet food and treat products, through its Tactical Fund. The news follows Beach Point’s minority investment in the pet food and treat company in December 2019.
Now with a controlling stake in the company, Beach Point aims to support Wet Noses’ as it seeks to expand its manufacturing capacity and meet growing demand for natural and organic pet nutrition products.
“We are thrilled to support Wet Noses' growth during an inflection point in the pet food industry, where consumers, retailers and brand partners are all exhibiting rapidly growing demand for the company's products including human-grade baked pet treats,” said Robert Bergmann, portfolio manager at Beach Point.
The investment deal was inked between Beach Point and Wet Noses Founder Jasmine “Jazz” Galligan. After leading the company for more than 20 years, Galligan left the Wet Noses in December 2020 and was succeeded by incoming Chief Executive Officer Johnni Rodgers. As part of Beach Point’s latest investment, Galligan will return to the company as CEO, and former Chief Operating Officer Jeff Quinn will return as well.
"We are excited to have Jasmine and Jeff rejoin the company and lead Wet Noses during its next phase of growth,” said Evan Klebe, managing director at Beach Point. “Both executives have a deep knowledge of the core business and its history, which, coupled with the added financial and strategic resources Beach Point can offer, will help the business fully capitalize on the compelling opportunities it sees across the pet treat and food market."
Wet Noses was founded in 1998. The company has since expanded to offer private label and contract manufacturing capabilities alongside the production of its branded products. Over the last 10 years, Wet Noses has invested in three human-grade baking lines at its Seattle-based facility, which has allowed it to expand its portfolio beyond treats to include complete-and-balanced foods, including baked kibble.
"Beach Point has been a terrific partner since its initial investment in 2019 and has been instrumental in implementing a growth strategy that has already expanded our customer relationships and product capabilities and enhanced our overall approach to building our business," Galligan said. "I am excited to rejoin the company's leadership team with Beach Point's support as we invest in meeting the growing demand for our products."
Read more about Wet Noses in our exclusive processor profile.