VMG Partners Raises a $500 Million Third Fund, Closes Three New Investments and Sells its Stake in Vega to White Wave for $550 Million

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Jul 16, 2015, 08:02 ET

SAN FRANCISCO, July 16, 2015 /PRNewswire/ -- VMG Partners, a private equity firm that specializes in investing in and building branded consumer product companies in the lower middle market, announced today the closing of VMG Partners III, L.P. with $500 million of committed capital. In addition to closing its third fund, VMG has also partnered with the founders and management teams of Health Warrior, Perfect Bar, and Vermont Smoke & Cure and entered into an agreement with The WhiteWave Foods Company (NYSE:WWAV) to sell portfolio company Sequel Naturals Ltd, the parent company of the Vega brand.

Michael L. Mauze, Managing Director of VMG, said, "VMG Partners has built its track record partnering with entrepreneurs to build leading consumer products companies. With the completion of our third fund we are now very well positioned to continue working with these creative and visionary entrepreneurs."

VMG will continue to invest in emerging, revolutionary brands addressing the evolving demands of a passionate consumer base. VMG brings a unique set of value-add resources and capital to early stage and established consumer brands in its core categories of food, beverage, wellness, pet products, personal care and household products.

Kara Cissell-Roell, Managing Director of VMG, said, "VMG is well situated to support brands as small as $5 million and as large as $500 million in sales. We provide access to a unique tool box of value-add resources and strategic capital to organizations and brands in our core consumer segments regardless of size or stage. Our team has a proven track record of helping entrepreneurs and management teams in critical areas of sales, marketing, field activation, operations, finance and legal strategy utilizing our VMG Toolbox on a customized basis. We will continue to work collaboratively with management teams to accelerate growth, drive brand awareness and create exceptional strategic value for all stakeholders."

VMG has been active in 2015 with the recently announced sale of Vega, a leader in plant based nutrition, to White Wave for $550 million as well as the completion of three investments in the better for you food and wellness sectors. VMG recently made investments in Health Warrior, Inc., which develops, markets, and sells convenient superfood snacks made from plant-based, nutrient-dense ingredients; Perfect Bar Holdings, LLC, a developer, manufacturer and marketer of nut butter based nutrition bars, and; Vermont Smoke and Cure, a manufacturer and marketer of antibiotic and nitrate free, humanely raised beef, pork and turkey meat sticks, bacon, summer sausages, smoked pepperoni and ham. VMG's recent investments illustrate the broad scope of VMG's investment criteria with sales ranging from less than $10 million to over $300 million at the time of investment.

Dave Baram, Managing Director of VMG, said, "Our latest investments exemplify the core areas of our expertise. Our efforts are focused on helping the entrepreneurs who built these exciting companies expand their consumer base and reach their full potential by employing sound and consistent investment strategies that have delivered above average returns for our investors and partner brand stakeholders over the past 10 years."

VMG's investors include leading college endowments, charitable foundations, international investors and corporate pension plans. Upon the completion of the pending sale of Vega, VMG will have exited all of its investments from its 2007 vintage fund in less than 9 years.

VMG's Fund III follows the successful closing of its Fund II, which closed in 2011 with $382 million of committed capital. Park Hill Group served as Placement Agent for VMG Partners and legal advice was provided by Latham & Watkins.

About VMG Partners
VMG Partners is focused solely on partnering with entrepreneurs and managers to support the growth and strategic development of branded consumer products companies in the lower middle market. Since its inception in 2005, VMG has provided financial resources and strategic guidance to drive growth and value creation in more than 20 companies. VMG's defined set of target industries includes food, beverage, wellness, pet products, personal care and household products brands. Representative past and present partner companies include KIND Healthy Snacks, Pretzel Crisps, Pirate's Booty, Waggin' Train, Natural Balance, Vega, Babyganics, Solid Gold and Justin's. VMG Partners is headquartered in San Francisco and Los Angeles. For more information about the fund please visit www.vmgpartners.com.

Contact: Chris Tofalli
Chris Tofalli Public Relations, LLC
914-834-4334

SOURCE VMG Partners