Paine Schwartz funds MS Biotec

Paine Schwartz Partners has made an investment in MS Biotec, a provider of products for the beef feedlot and dairy markets. No financial terms were disclosed.


SAN MATEO, Calif., Oct. 3, 2018 /PRNewswire/ — Paine Schwartz Partners, LLC (“Paine Schwartz”), a global leader in sustainable food chain investing, today announced that it has made a strategic investment through its Paine Schwartz Food Chain Fund IV in MS Biotech Holdings, Inc. (“MS Biotec®” or “the Company”), a leading provider of natural, proprietary products that maximize performance and enhance profitability in the beef feedlot and dairy markets. The proceeds from Paine Schwartz’s investment will be used to accelerate the development and commercialization of MS Biotec’s organization and innovative products, allowing the Company to capitalize on a significant market opportunity. Financial terms of the transaction were not disclosed.

MS Biotec® is the world’s first and only commercial producer of Megasphaera elsdenii (“Me”), a lactate-utilizing probiotic that enables feedlots to accelerate cattle from roughage to high-concentrate diets. Demonstrated benefits of Me include feedlot operational efficiencies, lower operational costs through faster step-up times, reduced operational complexity, reduced labor and lower use of forage. Enabled by its proprietary anaerobic fermentation and formulation expertise, the Company has successfully commercialized Lactipro Advance® and has an innovative new product pipeline including new freeze-dried and feed-incorporated product candidates. Additionally, MS Biotec® has strong relationships with feedlots, dairies, nutritionists, veterinarians and other industry participants.

Leander van der Walt, Chief Executive Officer of MS Biotec®, said, “This game-changing investment from Paine Schwartz Partners reflects the significant progress we have made in developing innovative natural solutions to the beef feedlot and dairy markets. The team at Paine Schwartz is bringing important financial resources and agribusiness expertise that will enable us to develop next-generation products and allocate further resources to animal studies, R&D and sales and marketing. The entire MS Biotec® team is energized and excited about our future as we begin our company’s next phase of growth.”

Kevin Schwartz, Chief Executive Officer and a Founding Partner of Paine Schwartz, said, “We are excited to be making this investment in MS Biotec®, a company with a strong team, a proprietary set of products and proven ability to commercialize a high-quality product pipeline with significant growth prospects. We have spent significant time analyzing the animal health industry and MS Biotec® represents the type of sustainable agribusiness investment we are targeting with our growth equity strategy. The Company is well positioned to capitalize on opportunities in the growing natural animal health products market, driven by the needs to increase productivity with sustainable solutions. Through our investment, we will provide resources to expand the Company’s capabilities, build the organization, develop new products and expand into other applications and markets. We look forward to working with Leander and the rest of the MS Biotec® team to realize the Company’s tremendous potential.”

About MS Biotec®
MS Biotec® provides high performance products and innovative solutions for the beef feedlot and dairy markets. The Company has strong synergies with feedlots, dairies and animal health entities, as well as nutritionists and veterinarians. MS Biotec® utilizes a new state-of-the-art production facility in Wamego, Kansas. Continuous focus on quality control ensures that all products exceed industry standards for the production of probiotics.

About Paine Schwartz Partners
A global leader in sustainable food chain investing, Paine Schwartz Partners is a private equity firm that focuses on investment opportunities in the fast-growing, dynamic global food and agribusiness sectors. The firm’s investment, operations and finance professionals invest throughout cycles across the food and agribusiness value chain and bring a collaborative and active management approach to portfolio companies. The firm currently invests through its $893 million Paine Schwartz Food Chain Fund IV, which is solely dedicated to food and agribusiness investing. For further information, see