Winooski, VT (PRWEB) June 11, 2013
MyWebGrocer, Inc., the leading provider of digital marketing solutions for grocery and Consumer Packaged Goods (CPG) companies, today announced it has completed a growth equity raise with HGGC, a leading middle market private equity firm. 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 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 generated exceptional growth since we partnered with our first institutional investor, the Stripes Group, in 2009, and we now feel that the time has come to take the next step in the Company’s evolution to further capitalize on a truly exciting market opportunity,” said Rich Tarrant, a Founder and CEO of MyWebGrocer. “We have benefited greatly from the operational assistance, strategic insights, recruiting capabilities, industry experience and technology expertise that the Stripes Group has provided us over the last four years, and we believe HGGC’s unique insights, proven track record with technology-enabled services businesses, and experience with founder-owned businesses make them the clear choice to support our exciting growth potential going forward.”
“The partnership we formed with Rich, his brothers Brian and Jerry, and the broader MyWebGrocer team is a perfect example of the type of investment we strive to make at Stripes Group,” said Dan Marriott, Managing Partner at Stripes Group. “MyWebGrocer was a rapidly growing, profitable, bootstrapped business driven by its founders when we made our investment, and through the team’s exceptionally hard work as well as the support from our firm, the Company has solidified its market leadership position while scaling profitability and accelerating revenue growth. We couldn’t be more pleased with the outcome of this transaction, and believe the Company’s partnership with HGGC will allow them to fully realize the potential that remains in front of them given their trajectory and the market opportunity.”
Tarrant agreed stating, “When we began looking for a new group of potential investors, we wanted a group who would bring more than capital—people who, like Stripes Group, would be 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.”
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 grocery retailers 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 Richard Lawson, Co-Founder and Managing Partner at HGGC. “We look forward to supporting Rich 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. The Stripes Group is a growth equity firm that makes investments in Internet, SaaS, Healthcare IT and branded consumer products businesses.
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, Kellogg, Unilever, Nestle and P&G. For more information on MyWebGrocer, please visit http://www.mywebgrocer.com.
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 http://www.hggc.com.
About Stripes Group:
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. For more information on Stripes Group, please visit http://www.stripesgroup.com.