New Water Capital invests in US snack manufacturer Pegasus to boost production
Pegasus is a primary contract manufacturer for food manufacturers, retailers and food service companies, producing frozen snacks and appetizers as well as difficult to produce products.
It will use the backing to support its recent expansion into a second manufacturing plant – a 135,000-square foot facility in Rockwall, Texas.
The family-owned business – founded in 1998 – already has a 55,000 square foot facility in Los Angeles, but “saw opportunities for growth” in the fast-growing frozen appetizer sector.
According to New Water Capital partner Jason Neimark, the Rockwall facility will allow Pegasus to increase market share, while meeting growing demand from new customers and better serving its existing markets.
Developing strengths
“Pegasus Foods’ strengths include its ability to satisfy the quality and safety specifications of the largest and most demanding CPG companies and manufacture an extremely diverse product line, while still providing the flexibility to customize packaging, labeling and product selection to meet all of its customers’ needs,” said Neimark.
"We look forward to our partnership with New Water, which will allow us to meet the growing demand for high-quality, high-convenience frozen foods,” added Jim Zaferis, who, together with co-founder Van Ambetielos, will continue to manage Pegasus’ daily operations.
“As highly regarded partners with expertise in the food manufacturing sector, the fact New Water partnered with us demonstrates their confidence in Pegasus and our strategy for growth.”
Second move in food
The Pegasus Foods investment is New Water Capital’s eighth since the company’s launch in 2015, and its second in the food manufacturing space.
The Boca Raton-based private equity firm focuses on lower-middle market companies in transition, in the consumer, retail and industrial manufacturing and services sectors, with revenues of $30m to $300m.
Financial details – including New Water Capital’s stake in Pegasus Foods – were not disclosed.
