20 Mar New Water Capital Partners with Pegasus Foods
Infusion of Growth Capital to Support Company’s Facility Expansion
New Water Capital L.P. has made an investment in Pegasus Foods, a leading contract manufacturer of frozen appetizers and snacks. Specializing in high-quality, difficult to produce products, Pegasus is a primary contract manufacturer for several consumer packaged goods and retail grocery companies, as well as quick service restaurants. New Water Capital, providing growth capital to Pegasus, will partner with the existing Pegasus team to support the company’s recent expansion into a second manufacturing plant, a 135,000-square-foot, state-of-the-art facility in Rockwall, Texas.
Founded in 1998, family-owned Pegasus Foods produces frozen snacks and other products for several prominent customers, including retail grocers, club stores, quick service restaurants and leading consumer packaged goods businesses. As a market leader in the fast-growing frozen appetizer sector, the company saw opportunities for growth constrained by its 55,000-square-foot Los Angeles facility. Its expansion into the Rockwall facility will allow Pegasus to both meet growing demand from new customers and better serve its existing markets. Day-to-day management of Pegasus’ operations will continue under the leadership of company founders Jim Zaferis and Van Ambatielos, New Water representatives said.
New Water Capital partner Jason Neimark said his firm sees tremendous opportunity for Pegasus to increase market share. “Pegasus Foods’ strengths include its ability to satisfy the quality and safety specifications of the largest and most demanding CPG companies and manufacture an extremely diverse product line, while still providing the flexibility to customize packaging, labeling and product selection to meet all of its customers’ needs,” Neimark said. “New Water looks forward to partnering with management as the company scales its manufacturing capacity and takes advantage of significant opportunities that have been presented to Pegasus in the frozen food contract manufacturing industry.”
“We at Pegasus look forward to our partnership with New Water, which will allow us to meet the growing demand for high-quality, high-convenience frozen foods,” Zaferis said. “As highly regarded partners with expertise in the food manufacturing sector, the fact New Water partnered with us demonstrates their confidence in Pegasus and our strategy for growth.”
The Pegasus Foods investment is New Water Capital’s eighth since the company’s launch in fall 2015, the second in the food manufacturing space.