2021: a hectic year for investors in the pet industry

Perhaps one of the biggest deals happened nearly at the end of the year with the offer of €3.7 billion ($4.3b) by US private equity firm Hellman & Friedman to acquire German online pet food supplier Zooplus.  

The takeover came in a critical moment for the industry and the company itself, that as one of the largest online retailers in Europe saw an increase in sales due to the pandemic.

According to the Munich-based company, sales in the first six months of 2021 increased 16% year-on-year from €862.5 million ($973.3m) to €1,002.2 million ($1131m). In 2020, Zooplus posted a 14% revenue increase. 

Central Garden & Pet acquired in July 2021 manufacturer D&D Commodities, which specializes in bird, small mammal and wildlife foods. With this movement, the company wanted to “build scale in a core category” and leverage the D&D premium brand portfolio.

The Californian business posted net sales of $3.3 billion (€2.92B) in 2021, an increase of 23% against the same period of the previous year. 

Provider of premium pet food and treats BrightPet Nutrition Group acquired Ohio-based MiracleCorp Products to strengthen its position in the industry and expand its portfolio. Shortly after, Dave Kowal became the new CEO of the group.

Belgian private equity firm Whitebridge Pet Brands announced the acquisition of Grizzly Pet Products. With offices in the US and Denmark, the company manufactures supplements for dogs, cats and horses. 

In October, Kansas-based designer and manufacturer of pet products for cats and dogs Cosmic Pet was acquired by Platinum Equity. The range of products was incorporated into the portfolio of subsidiary supplier Petmate, which the company also acquired earlier in the year.  

In an attempt to become a leading player in the Brazilian pet industry, food processor BRF SA acquired pet food companies Mogiana Alimentos (São Paulo) and Hercosul (Rio Grande do Sul). The combined amount of the deal, according to insiders, was R$1.35 billion (€230.70M / $260.37M).

In 2020, BRF put as a significant achievement to become a leading player in the pet food market by reaching R$4.5 billion (€700M / $791M) in net revenue within the segment by 2030.

Retailers  

Pet Value, which announced the closure of its 358 stores in the US earlier in 2020, was also one of the leading companies to watch in 2021 as Pet Supplies Plus purchased 40 of its stores across seven states.

The investment took place after Franchise Group acquired the last company for $700 million (€620.25m). The company recently opened its 600th shop.

United Raw Pet Foods, a majority-owned subsidiary of Canadian Dane Creek Capital, acquired Growlies Pet Foods, a leading pet specialty retailer based in British Columbia. The company also bought a second pet specialty retailer based on Vancouver Island called Pets West Pets & Supplies and at least 3 other companies within the industry.

Pet supplement brand Zesty Paws reached an agreement with Health & Happiness (H&H) Group that acquired 100% of the company in August. Their products are sold online and the company recently reached an agreement with PetSmart and Amazon to distribute their products in the Canadian market.

In the UK, VetPartners acquired the online retailer VetUK. The company, founded in 2005, dispatches an average of 2,500 to 3,000 orders per day to pet parents.

Private labels

At the beginning of the year, Belgian private-label producer United Petfood announced the acquisition of Cambrian Pet Foods, a family-owned British manufacturer of dry and wet pet food products. 

With this movement, the company’s production footprint increased to 17 facilities across eight European countries.

In the US, Missouri-based Diamond Pet Foods acquired the dry pet food business of J.M. Smucker for roughly $33 million (€29.1M). In its last annual report, the private label company said it “maintained positive momentum” for its pet food and pet snacks strategy in 2021.

Diamond Pet Foods recently announced that it also agreed to invest in a 200,000 sq. foot (18,580 sqm) manufacturing facility from the same company in Kansas.