HGGC said on Tuesday that it has completed an investment in MyWebGrocer. No financial terms were disclosed. Also, as part of this transaction, the Stripes Group, a minority investor in MyWebGrocer, has sold its stake. The Jordan Edmiston Group served as financial advisor to both MyWebGrocer and Stripes Group. Based in Winooski, Vermont, MyWebGrocer is a provider of digital marketing solutions for grocery stores and consumer packaged goods companies.
PALO ALTO, Calif.—June 11, 2013—HGGC, a leading middle market private equity firm, today announced that it has completed a growth equity investment in MyWebGrocer, Inc., the leading provider of digital marketing solutions for grocery stores and global consumer packaged goods (CPG) companies. Terms of the private transaction were not disclosed.
Headquartered in Winooski, Vermont, MyWebGrocer provides a suite of leading-edge eCommerce and eMarketing solutions to the grocery and consumer packaged goods industries, with products for every digital touch point. As part of its unique platform, MyWebGrocer operates the nation’s largest grocery ad network with over 10 million monthly unique visitors. The Company’s customers include more than 140 grocery brands, including some of the largest retailers such as Kroger, Shoprite, and Albertsons; as well as more than 200 CPG brands. MyWebGrocer, which employs 180 people, is profitable and saw 2012 revenues increase nearly 60 percent over the previous year.
For grocers, MyWebGrocer provides a software platform that allows consumers to plan grocery visits online, including making shopping lists, downloading coupons, and viewing digital circulars that outline promotional items. MyWebGrocer’s software also allows grocery stores to fully support online transactions for in-store pick-up or home delivery.
For consumer packaged goods companies, MyWebGrocer provides the ability to run digital marketing campaigns on grocery websites, and helps them manage digital display and search advertising campaigns through proprietary consumer data. MyWebGrocer is unique in its ability to “close-the-loop” and allow CPG companies to accurately measure the effectiveness of their advertising budgets.
“We have always worked with investors who bring more than capital—people who are true partners that value what we have built and want to work alongside us to accelerate our growth and realize the tremendous potential of MyWebGrocer,” said Rich Tarrant, a Founder and CEO of MyWebGrocer. “HGGC’s unique insights, proven track record with technology-enabled services businesses, and experience with founder-owned businesses make them the clear choice.”
As both buying habits and advertising continue to move online, MyWebGrocer is well-positioned to gain share from both the $1 trillion grocery retail industry and the more than $4 billion that CPG companies spend on online advertising each year.
“Changing consumer behavior is pressuring grocers and CPGs to adopt digital solutions, and MyWebGrocer is the clear vertical market leader,” said Hudson Smith, Principal at HGGC. “With new eCommerce-focused entrants seeking to take share from traditional grocers, we believe that grocers will increasingly look to MyWebGrocer to provide the technology platform that enables consumers to plan and shop online, as well as enhance the in-store experience with mobile and social offerings.”
“This investment is further proof of HGGC’s unique ability to partner with strong management teams and founders who want to continue to invest in and grow their businesses, as well as our expertise in technology-enabled services businesses” said Rich Lawson, Co-Founder and Managing Partner at HGGC. “We look forward to supporting Rich Tarrant, his brothers, Jerry and Brian who co-founded the business, and the MyWebGrocer management team to continue to build upon the foundation of success.”
The Jordan Edmiston Group served as financial advisor to MyWebGrocer and its minority investor, the Stripes Group, who sold its stake in MyWebGrocer as a part of this transaction. Stripes Group is a leading growth equity firm that makes minority and majority equity investments in B2B/B2C Internet, SaaS, Software, Healthcare IT, and Branded Consumer Products businesses. The firm generally partners with founder driven, profitable, market-leading companies with proven business models that are generating exceptional revenue growth.
Based in Palo Alto, California, HGGC is a leading private equity firm focusing on leveraged buyout, recapitalizations and growth equity transactions in the middle market. The firm seeks to partner with strong management teams and founders to build companies capable of generating sustainable growth. With years of collective deal and operational experience, HGGC brings best practices from private equity and global corporations to help middle market businesses in a wide range of industries outperform the market. The firm is currently investing out of a $1.1B Fund. For more information, please visit www.hggc.com.
MyWebGrocer drives digital connections between consumers, grocery retailers, and Consumer Packaged Goods brands, offering a breadth of shopper marketing services supported by a comprehensive technology platform. MyWebGrocer manages digital solutions for more than 140 retailers nationally, representing more than 10,000 stores, and 200+ major consumer packaged goods brands, including McCormick, Kelloggs, Unilever, Nestle and P&G. For more information on MyWebGrocer, please visit www.mywebgrocer.com.