US: WM Partners acquires Feel Good Organics

  • 17 February 2021
  • M&A
FGO is an organic, superfoods brand sold exclusively on Amazon.com
Photo as seen on FGO’s website

WM Partners has announced the acquisition of Feel Good Organics, a US-based organic, superfoods brands sold only on Amazon.com. WM Partners is a US-based middle-market private equity firm specialised in buyout investments in the health and wellness sector.  

FGO was founded in 2016 by two friends on a mission to create a healthy brand offering high-quality, certified USDA organic, and non-GMO project verified products to help customers live healthy and feel good. The company sells products in five primary product categories: superfood powders, tea bags, edible flowers, loose tea, and superfood Capsules.

The company said that many of FGO’s products are ranked #1 in their respective product categories on Amazon, including its packaged teas. It also claimed that its proprietary technology allows FGO to take advantage of channel changes and consumer feedback to better serve their customers. “FGO boasts a strong loyal customer base and a high percentage of repeat purchases. Products have amassed over 94K ratings on Amazon, with an average score of 4.6 stars,” WM Partners reported.

“We are excited to work with the FGO team and help them grow the brand by further expanding their distribution and product lines and leveraging our capabilities as we combine the brand with our existing portfolio of functional foods brands,” said Jose Minski, co-founder of WM Partners.

The acquisition was made through WM Partners’s HPH II Investments Master Fund, LP together with its related parallel and feeder funds HPH II, through its wholly owned entity. Terms of the transaction were not disclosed.

Brad Harbach, co-founder of FGO, said: “After meeting the WM Partners team and getting to know them, we believe they are the right partner for FGO. WM Partners has many years of operational experience growing emerging brands in the health and wellness industry. We are excited to see the next phase of growth for the brand.”

HPH II is focused on acquiring lower-middle market companies with leading brands in the health and wellness sector and growing the companies through an operational buy and build value creation strategy.

The fund is focused on the following subsectors: functional foods, natural personal care and natural over-the-counter remedies, as well as fast-growing, defensive and highly fragmented subsectors.

HPH II aims to consolidate multiple complementary brands into several holding companies, and grow and scale them operationally so they become attractive to strategic buyers.

With the acquisition of FGO, the fund is adding to its functional foods holding company, which currently holds brands in the hydration, collagen and matcha categories.

FGO took financial advice from Lincoln International and legal advice from BraunHagey & Borden. King & Spalding served as legal advisor for WM Partners.