In the News
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By: Beina Xu
June 23, 2011
Peterson Sells Remaining Equity Stake In Winder Farms
The online grocer provides dairy, produce, pasta, meats and other foods to households and retailers in Utah and Nevada. Peterson initially invested in the company in 2004, with follow-on investments in 2005 and 2007. The firm was an equal investor with Dolphin Capital, which bought Peterson's stake.
When Utah-based private equity shop Peterson Partners first invested in Winder Farms in 2004, the company was just "your old milkman," a home dairy delivery business.
Today, Winder Farms has evolved into a grocery delivery company--and Peterson is selling the rest of its stake to the company's co-investor Dolphin Capital.
Peterson initially invested in the business in September 2004, with follow-on investments in 2005 and 2007, to fuel the company's expansion into the Las Vegas market. The firm was an equal investor with Dolphin in the original deal; together, the two owned a majority stake. A Utah Business Journal article on Dolphin's website states the firm invested $2.5 million in 2004.
Peterson typically invests $5 million to $8 million per deal. Dolphin targets companies with $5 million to $100 million in revenue or $1 million to $15 million in earnings before interest, taxes, depreciation and amortization.
Dolphin and Winder didn't return calls for comment.
Winder Farms, of West Valley City, Utah, is an online grocer that provides dairy, produce, pasta, meats and other food to households and retailers in Utah and Nevada. The return was a good one for Peterson, although not its best, according to Managing Partner Dan Peterson.
The company, formerly known as Winder Dairy, started off delivering dairy products, and soon expanded its distribution and sale channels.
"One of the things we saw was that if you've got that infrastructure, it's easy to expand by penetration of new products and geographic areas," Peterson said. "This is a business that has a high profile here. It's part of the culture in Utah. It's easier to build upon a brand with a place in the consumer's consciousness."
The recession did affect the business, slowing growth, he added. The business currently has under $100 million in revenue.
The exit was out of Peterson Partners III LP, which closed in 2004 at slightly more than $100 million. The vehicle is a small business investment company.
The firm, which has an emphasis on companies based in the Intermountain West region of the U.S., recently raised $54 million for its sixth fund, which had a target of $50 million.
Reach Peterson Partners at 801-365-0180.