Granite Creek is an experienced Agribusiness investor with institutional sector knowledge and relationships. Our Operating Partners have best-in-class experience in Agribusiness and have successful track records as founders, executives, and investors in driving value creation. Granite Creek is focused on high-growth, upstream products and services that support crop and animal productivity.
VSH is the holding company of a fast-growing animal health platform that addresses the needs of veterinarians and livestock producers with novel solutions and innovative delivery systems to support precision medicine and in-field operational efficiency. The holding company has two subsidiaries, Veterinary Pharmaceutical Solutions (“VPS”) and Diamond Animal Health (“DAH”), which produce autologous and autogenous vaccines, antibiotics, NSAIDs, trace minerals, and other OTC products for its customers.
Situation
VPS was founded by two production animal veterinarians and two pharmacists in the late 1990s. They had a vision to identify differentiated treatment solutions that delivered value to the livestock producer, the veterinarian, and the on-farm staff in a measured and cost-effective way. Over the ensuing two-plus decades, they worked with the FDA and the Board of Pharmacies to introduce novel solutions for the swine and poultry markets that garnered a loyal following based on proven efficacy, impeccable quality standards, and exemplary customer service. In 2019, after twenty-five years, the founders began exploring strategic alternatives for estate and succession planning. They were seeking a partner who would work with them to create liquidity, transition the business’ leadership, and push the company forward to further grow and innovate.
Investment
In February 2020, Granite Creek and its Operating Partner, Mike Ray led the control buyout of VPS from its four founders. The firm arranged the senior and junior subordinated debt for the transaction as well as funded the equity along with a rollover from the original founders. Our investment was used to provide liquidity for the founders and to invest in the go forward growth of the business. Key investments were made in human capital, the facility and in research & development initiatives for organic growth. Subsequently, Granite Creek supported the acquisition of Diamond Animal Health (DAH) by supporting the expansion of the senior debt facility and providing a follow-on equity investment to close the transaction. With the addition of DAH, VSH’s management team was able to enter new end-markets, add new product lines, leverage expanded production capabilities and achieve greater economies of scale across its core operational functions.
Value Creation
Granite Creek and its Operating Partners have positioned VSH for sustainable long-term growth by:
Currently
Under Granite Creek’s ownership, VSH has doubled in size and successfully launched several new products while maintaining its commitment to sound science and quality. The company has in-place production capacity to more than double again as it continues to innovate and gain market share. Granite Creek and Mike Ray remain active in supporting the business and continue to look for strategic opportunities to further grow the business organically and through M&A.
