Analysis: Real Pet Food considers sale amid investor pressure

According to business and financial news publication Australian Financial Review (AFR), Real Pet Food (RPF), a New South Wales-based business, may soon be for sale.

The pet food manufacturer’s investors, including Temasek, Hosen Capital, New Hope Group and others, have appointed Citi Australia, the Australian division of Citigroup and one of the world’s largest financial services organizations, to analyze the company’s options. 

According to AFR, Temasek, which is owned by the Singapore government, is pushing for the sale. RPF has faced an uncertain future since 2023 when it received a major investment that failed to quell rumors of an eventual sale. 

That investment brought in A$243 million (€147M/$154M) in funds meant to boost production capacity. The company framed it as a show of investor confidence in its growth plan. 

The company’s value 

Around the same time as this investment, Australian media reported that a new shareholder’s agreement hinted at a possible sale of the company by 2025.

While it’s not clear how much RPF is worth today, the company was purchased by New Hope Group for A$1 billion (€600M/$630M) in 2017. AFR reported in January that a sale between A$1.2 (€720M/$760M) and A$1.6 billion (€960M/ $1B) may be reasonable.

Officials from RPF did not respond to requests for comment by GlobalPETS. 

A major asset?

While the company’s performance is unclear, RPF’s size makes it a potentially attractive investment. 

The company owns over a dozen brands that are sold in Australia, New Zealand, the UK and Asia. Its umbrella covers products such as Nature’s Gift, Billy + Margot, Trilogy, Ivory Coat and Vet’s Best. 

According to global market research firm IBISWorld, RPF is expected to earn A$499.6M (€298.6M/$310.5M) in 2025. It has Australia’s third-largest market share of pet food companies, behind American corporation Mars and Swiss giant Nestlé.