Food-and-drink specialist Arbor Private Investment Management has made its first foray into the pet-food market.
The firm agreed to buy the U.S. private-label business of Mars Inc.’s pet-care unit for an undisclosed price, according to a press release. The deal is expected to close by the end of the year.
The unit produces pet-food products at five manufacturing plants in the U.S., the release stated. The sale will allow Mars to focus on brands such as Pedigree and Iams.
Arbor has backed more than 55 food-and-beverage companies, but no pet-food manufacturers, a spokeswoman said.
The firm said it would benefit from the experience of Chris Harned, a partner who joined the firm from Cypress Group in 2016, and who has made several investments in the sector.
Arbor has offices in Chicago and New York and closed it latest private-equity fund, Arbor Investments IV LP, in 2016 with $765 million.