Better Choice Company Closes Acquisition of Halo


Better Choice Company closed its $28 million financing and acquisition of Halo, Purely for Pets.


The Halo acquisition is complementary to the animal health and wellness strategy of Better Choice with its existing brands. As part of the transaction, Werner Von Pein, Halo’s CEO, and Rob Sauermann, Halo’s chief strategy officer, will remain part of the team to lead the operations of this subsidiary, continue to grow distribution via e-commerce, explore food, drug and mass channel expansion opportunities and maintain revenue internationally.


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."


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 accompanied with $20.0 million of personal guarantees from insiders and key stakeholders.


Halo is a premium, natural pet food brand with a 30-year operating history. Halo’s products consist of dog and cat portfolios, derived from real whole meat and no rendered meat meal. E-commerce is Halo’s largest and fastest growing distribution channel, complementing its brick-and-mortar presence in leading U.S. retail outlets.