LLR Partners Provides $10 Million of Growth Capital to Pet Food Direct, Inc.

PHILADELPHIA--(BUSINESS WIRE)--LLR Partners Inc. (“LLR”) announced the completion of a $10 million equity investment in Pet Food Direct, Inc. (“Pet Food Direct” or “the Company”), a leading direct retailer and marketer of pet food, supplies and accessories. The equity will allow Pet Food Direct to continue its rapid growth and provide additional services and products to its customer base.

“We have chosen an excellent partner to support Pet Food Direct as we expand our aggressive growth plans. We look forward to leveraging their expertise and business network in direct marketing and are excited to work with the LLR team.”

Pet Food Direct specializes in meeting the unique needs of pet owners. With over 11,000 products and 400 brands, the Company offers a combination of selection, discount prices and convenient delivery. The Company also provides a number of value-added services, including information on pet healthcare and nutrition, research and an Auto-Ship program, offering the convenience of reliable and timely delivery of pet food and other supplies. Pet Food Direct was founded in 1997 and currently serves over 200,000 customers throughout the United States.

Geoff Walker, Chief Executive Officer, says, “We have chosen an excellent partner to support Pet Food Direct as we expand our aggressive growth plans. We look forward to leveraging their expertise and business network in direct marketing and are excited to work with the LLR team.”

“By focusing on customer needs and trends in the $40 billion pet industry, Pet Food Direct has rapidly grown into a leading and differentiated online retailer,” said Howard Ross, a Partner at LLR. “Since joining the Company in 2000, Geoff Walker has applied his experience as a direct marketing executive to the pet industry and accelerated the growth of the Company through innovative marketing programs. We are delighted to partner with him and his team as Pet Food Direct expands its loyal and stable customer base.”

The Keystone Equities Group, LP acted as placement agent for the transaction and has been a longtime strategic and financial advisor to Pet Food Direct.

About LLR Partners Inc. (LLR)

LLR Partners Inc. is a $620 million private equity firm providing capital to middle market companies with growth potential, proven business models and outstanding management teams. LLR makes investments of $10 million to $50 million in a broad range of industries, with an emphasis on business services, healthcare, financial services and information technology. Based in the Philadelphia area, LLR seeks to create value through a variety of transactions, including expansion capital, recapitalizations and buyout investments. For more information about LLR, please visit www.LLRPartners.com.

About Pet Food Direct, Inc. (Pet Food Direct)

Founded in 1997, Pet Food Direct, Inc. has quickly established itself as one of the most comprehensive and easy-to-use online shopping resources for pet food, supplies and accessories. Pet owners can visit PetFoodDirect.com to choose from a wide selection of products and value-added services, including information on pet healthcare and nutrition. The company's main office and distribution center is located in Harleysville, Pennsylvania. For more information about Pet Food Direct, please visit www.PetFoodDirect.com.

About The Keystone Equities Group, LP (Keystone)

Keystone provides financial services that enable public and private companies, institutional investors and private clients throughout the world reach their financial goals. As a full service investment banking and brokerage firm, Keystone develops a clear focused vision for short, medium and long term financial goals, which enables us to manage the complexity of your strategic development, investment and execution needs. For more information about Keystone, please visit www.keystoneequities.com.