TPG buys 25% stake in Schiff Nutrition
TPG Growth bought a 25% stake in $200-million publicly traded supplement manufacturer Schiff Nutrition International from majority shareholder Weider Health and Fitness for $48.8 million. Weider Health and Fitness CEO Eric Weider will continue as Schiff's chairman, and TPG executives William McGlashan and Matthew Hobart were appointed to the board. McGlashan co-founded supplement company Pharmanex, was a venture investor and later CEO of software company Critical Path, where Hobart was VP. Following the transaction, WHF owns approximately 25% of the fully diluted outstanding shares and retains approximately 78% of the voting power. TPG Growth and WHF have agreed to vote together on major business issues affecting the growth and operations of the company. Revenue for Schiff for the twelve months ended August 31, 2010 increased by 8.5% to $208 million compared to the previous comparable twelve months. TPG Growth is an invesments arm of TPG Capital (formerly known as Texas Pacific Group), a global private investment firm with $47 billion of capital under management across a number of funds. TPG was reportedly in the running to buy NBTY, the largest U.S. supplement company that was acquired in July 2010 by The Carlyle Group.

Le Gaga to raise $92 million in IPO
Le Gaga Holdings Ltd. (Hong Kong), one of the largest greenhouse vegetable producers in China, plans to raise approximately $92 million in an IPO of American Depositary Shares. Its stock will be listed on Nasdaq Global Market. Le Gaga plans to use about $62 million of the proceeds to build greenhouses and other agricultural facilities and to improve existing infrastructure; remaining funds will be for research and development. Le Gaga reported compound annual growth of 35% for 2008-2010 and revenue of $41.4 million for fiscal year ended March 31, 2010. Le Gaga sells more than 100 types of vegetables to wholesalers, institutional customers and supermarket chains in China and Hong Kong. Its customers include Wal-Mart Stores Inc. and Hong Kong supermarket chains Wellcome, ParknShop and Vanguard.

Tata leads Activate’s second round of financing in 2010
Functional beverage company Activate (Newport Beach, Calif.) has raised more than $6 million in financing plus equity commitments for an additional $15 million. Tata Global Beverages Ltd. will lead the round, joined by beverage investor James Berkeley, beverage distributors, and existing investors. The deal follows Activate’s $6 million capital raise in March 2010, which was led by First Beverage Group, Tornante and other existing investors. The Tata group, which generated revenues of $71 billion in 2009, is not new to the functional beverage category. Three years ago the India-based global tea company sold its 30% stake in Vitamin Water to Coca-Cola Co. for $1.2 billion. Unlike most supplement enhanced beverages Activate stores dry functional ingredients inside its bottle caps to help maintain efficacy rather than dissolving them in water or juice. The ingredients are added to the beverage by the consumer before drinking. While functional beverages generally have been criticized for being too sugary, Activate’s drinks are sweetened with stevia and are 5 calories per bottle. According to a report by Global Industry Analysts, the functional beverage market grew in 2009 and 2010 but at a slower pace in Europe and North America and it expects the category to bounce back quickly once economies recover, with the Middle East, Asia-Pacific, Latin America and Eastern Europe the growth engines.

Greenmont invests $2 million in EcoSMART
EcoSMART Technologies, Inc. (Atlanta, Ga.) announced  a $2 million equity investment from Greenmont Capital Partners and the funding of an additional $2 million under its credit facility with Western Technology Investment. EcoSMART will use the funds for additional growth capital and to support its working capital requirements to grow sales of its natural pesticide products. EcoSMART products are based on proprietary blends of botanical essential oils that it says are safe for both humans and the environment. “Greenmont looks for companies in the Natural Products categories with proven customer traction and natural products that are unique and compete effectively with their non-natural alternatives,” said David Haynes of Greenmont Capital Partners. “EcoSMART’s impressive growth through leading home centers, grocery chains and natural retailers validate the consumer demand for a safe and effective alternative to synthetic pesticides.” Greenmont sponsored Nutritional Capital Network’s LOHAS Venture Fair in 2009, which was dedicated to green products and services.

Cyber-Rain raises $1.8 million
Cyber-Rain (Encino, Calif.), the maker of an Internet-based smart sprinkler controller system, has announced a $1.8 million Series B financing. The lead investor, DeWaay Investment Partners, was joined by new investor Athenian Venture Partners. Also participating were Momentum Venture Management and Funk Ventures, which led the Series A round in 2009. Adam Claypool, managing director of DeWaay Investment Partners, has joined the Cyber-Rain board of directors, while Athenian will nominate a board observer. Cyber-Rain checks the weather via the internet and automatically adjusts watering schedules, claiming to save up to 40% on water bills by stopping sprinkler systems on rainy days and automatically decreasing the watering schedule when it is cold or humid. Since the company was launched in 2007, Cyber-Rain has been installed in more than 1,200 residential and commercial sites. Cyber-Rain was a presenter at the NCN at LOHAS meeting in June 2009.

The Fresh Market looks to raise $260 million in IPO
The Fresh Market Inc. (Greensboro, N.C.), an upmarket grocery chain with an emphasis on fresh, premium perishables, will seek to sell about 13.2 million shares in a November 4, 2010 initial public offering at an expected price range of $18-20 per share for a total of  about$260 million. As of April 30, 2010, Fresh Market operated 95 stores in 19 states, primarily in the Southeast, Midwest and Mid-Atlantic, having more than tripled its store count since 2000. The stores have a smaller-box format averaging approximately 21,000 square feet, compared to 40,000-60,000 square feet for many conventional supermarkets. Whole Foods Market once described its sweet spot for most markets as 45,000-60,000 square feet, but in 2007 it acquired the smaller footprint Wild Oats chain. Fresh Market has grown from 53 stores in 2005 to 92 stores in 2009, a compound annual growth rate of approximately 15%. Its sales increased from $460 million in 2005 to $862 million in 2009, a CAGR of 17%. Whole Foods had $8 billion in fiscal 2009 sales and more than 270 stores in North America and the U.K. The Fresh Market was founded by Ray and Beverly Berry in 1982, and the retailer sees room for “at least” 500 Fresh Market stores in the United States.

Endeavor Capital and management buy Bristol Farms
Bristol Farms’ management team and investment firm Endeavor Capital purchased 14-store high-end grocery chain Bristol Farms from struggling parent company Supervalu. Bristol Farms operates in Southern California and is known for its organic products, seasonal edible gifts and in-house catering service. The chain has about 1,500 employees and pulled in more than $200 million a year in sales. Founded in 1982 by two meatpackers as one store in Rolling Hills Estates in L.A. county, Bristol Farms was bought by Albertsons in 2004. Albertsons was sold in 2006 and broken into three pieces as part of an $11-billion deal with Supervalu acquiring more than 1,100 stores, including the 270 Albertsons and Bristol Farms markets in Southern California. Bristol Farms was a corporate orphan and couldn’t compete effectively with rivals such as Whole Foods in organic foods, said analysts. In 2010 Supervalu has reportedly also sold off its IT unit Supervalu India, six Bigg's supermarkets, pharmacies in the Cincinnati area and 11 of its Shaw's stores in Connecticut. Endeavour Capital portfolio companies include Columbus Foods, National Frozen Foods, and grocery chains WinCo Foods and New Seasons Market.

VetCentric raises $3 million
VetCentric (Glen Burnie, Md.), a company providing home delivery of pet medications, has raised $3 million in Series B financing. Sherbrooke Capital, Asset Management Company, and the Nestle Venture Capital Fund, part of Nestle S.A, contributed equally to the round. The additional capital will be used to accelerate the company’s growth in the vet-sponsored home delivery market. “This investment is a great vote of confidence in the VetCentric home delivery platform and our management team, and positions us to further build upon our recent growth,” said Ted Root, president and CEO, VetCentric. “We have delivered over 2.5 million orders on behalf of veterinarians over the last ten years and worked with more than 6,000 clinics in recent months.” VetCentric enables veterinarians to offer the convenience of home delivery to their clients. Each practice controls product selection and pricing, making home delivery an extension of their in-house pharmacy. Sherbrooke Capital is a member of NCN’s Founder’s Circle, and Nestle is an NCN Cornerstone Investor.

Tasty Bite completes financing round
Preferred Brands International (Stamford, Conn.), the manufacturer of Tasty Bite, a brand of all natural, shelf stable Indian and Asian food, has announced an investment by 2x Consumer Products Growth Partners. Terms were not disclosed. Gary R. Sebek and Andrew S. Whitman, managing partners of 2x Consumer Products Growth Partners, will work closely with CEO Ashok Vasudevan and the Tasty Bite management team. The investment will help expand capacity at the company’s manufacturing facility in Pune, India, in addition to increasing Tasty Bite sales, distribution and marketing efforts. “In seeking out highly differentiated businesses with significant growth potential, we review hundreds of opportunities among emerging branded consumer products companies each year,” commented Sebek. “Having proactively evaluated many ethnic food companies, Tasty Bite is in a class of its own with an outstanding management team.” Tasty Bite reported consistent annual growth in excess of 35%. Existing investor Rustic Canyon/Fontis Partners also participated in the financing.