Central Valley Fund exits Ultra Gro Plant Food
September, 11, 2013.- The Central Valley Fund (“CVF”) announced the exit of its investment in Ultra Gro Plant Food (“Ultra Gro”) in Madera, CA. CVF supported a management led buy-out (“MBO”) of Ultra Gro in 2008 by investing $3.35 million in Mezzanine Debt and Equity to assist management in financing the purchase from the company founders.
The long tenured MBO team – Don Parreira, Harold Peters, Steve Best and Craig Fourchy - saw the opportunity to take advantage of the company's strength in the market place and further grow its dedicated offerings in the fertilizer industry. Over the last five years the company continued to grow their product range, expand geographically throughout the California Central Valley and into Mexico, and grow its client base.
"The MBO gave Ultra Gro the opportunity to take full advantage of the expanded demand for fertilizer products in a strong commodity market. Thanks to continued internal and external investment in the product range, Ultra Gro has captured new market share and continues to expand its customer base domestically, and in Mexico”, according to President, Don Parreira.
The MBO gave Ultra Gro the opportunity to focus fully on those new and existing clients and grow to meet their needs and requirements.
Ed McNulty, Partner at CVF, said; “Ultra Gro has become a market leader in specialty fertilizer in the Central Valley. The transformation of the business demonstrates our partnership with the management team and their hard work in creating a diversified business in a competitive market. We wish the business all the best in the future as it embarks on its next stage of growth”.
About The Central Valley Fund: The Central Valley Fund was established in 2005 and to finance later stage growth and buy outs through mezzanine and preferred equity investments and manages over $140 million in committed capital. The fund has offices in Davis, CA and Fresno, CA. It is focused on making investments in California’s Central Valley and throughout Western U.S. For more information, please visit http://www.centralvalleyfund.com.
About Ultra Gro Plant Food, LLC: Ultra Gro is a full-service provider of custom-blended fertilizers that can be tailored to a variety of crop, soil and microclimate conditions. From product field trials to timely order turnaround and delivery, the company works closely with its customers to ensure that its fertilizer programs meet and exceed the expectations of today's growers. For more information, please visit, http://www.ultragroplantfood.com.