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December 31, 2019

Press release: Better Choice Company

Better Choice Company, Inc., an animal health and wellness CBD company, announced the closing of its previously announced acquisition of holistic pet foods leader Halo, Purely for Pets and $28 million financing.

Halo is a premium, natural pet food brand with a rich 30-year operating history. Halo’s products consist of a diversified dog and cat portfolio, derived from real whole meat and no rendered meat meal, which is highly digestible due to use of real whole protein. E-commerce is Halo’s largest and fastest growing distribution channel complimenting its brick and mortar presence in leading U.S. retail outlets, including PetSmart and Petco.

The Halo acquisition is complimentary to the animal health and wellness strategy of Better Choice with its existing brands that include direct-to-consumer premium dehydrated raw pet food through TruDog, Orapup, TruCat and Rawgo as well as hemp-derived CBD pet products.

As part of the transaction, Halo chief executive officer, Werner Von Pein, and chief strategy officer, Rob Sauermann, will remain part of the team to lead the operations of this subsidiary, continue to grow distribution via e-commerce, explore Food/Drug/Mass channel expansion opportunities and maintain revenue internationally.BCC_Logo

Total consideration for the Halo acquisition is approximately $46.9 million comprised of $23.5 million in cash, $15.0 million in junior subordinated purchaser notes and $8.5 million of common equity.

“We are pleased to close on our financing and welcome Halo to the Better Choice portfolio of premium animal health and wellness brands,” said Damian Dalla-Longa, CEO of Better Choice. “Halo will add to our existing consumer product goods portfolio a global, e-commerce presence as well as operational, financial and commercial synergies. The addition of Werner and Rob will add depth to our team and provide us invaluable strategy and insight going forward.”

“Rob, myself and the rest of the Halo team are eager to join Better Choice in our shared mission to provide better health options for animals,” said Werner von Pein, CEO of Halo. “As part of Better Choice, we will focus on expanding our company’s footprint providing a greater reach of our quality holistic pet foods.”

Under the terms of the offering, Better Choice Company has closed on $28 million in aggregate principal amount of Senior Secured Credit Facilities. Interest on the Notes will have a 12 percent annualized cash interest payable monthly, maturing 12 months from the date of issuance with no prepayment penalty. The financing is also accompanied with $20.0 million of personal guarantees from Insiders and key Stakeholders.

Jefferies LLC served as exclusive financial advisor to Halo. Greenberg Traurig represented Halo as counsel. Latham & Watkins served as corporate counsel for Better Choice.

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