Fressnapf completes acquisition of Arcaplanet
The transaction is expected to increase the footprint of the German pet retailer in Europe.
Fressnapf announced that it completed the acquisition of Arcaplanet after the final approval by the European Commission. British private equity firm Cinven, which acquired a majority stake in Italian layer in 2022, joined Fressnapf as a strategic partner and hold a minority stake in the Krefeld-headquartered company.
“With the integration of Arcaplanet and the support of Cinven, we are about to unlock tremendous potential, drive excellence, and enhance our omnichannel product and service range for pet lovers across Europe,” says Fressnapf CEO Peter Pritchard.
According to Pritchard, the German retailer is now “well-positioned to further shape the future of the pet supplies industry in Europe.” The deal will expand Fressnapf’s reach into 560 stores as the company continues to become a major player in the European pet goods market.
Bigger footprint
Fressnapf’s takeover follows a sustained effort by Arcaplanet to broaden its retail presence. The company has grown in bursts, quickly increasing its saturation of new markets. For example, it opened 18 new stores in Sicily alone last year.
In an interview with GlobalPETS last year, CEO Nicolò Galante said the company “could reach 200 more stores within the next 5 years in southern Italy.”
According to Cinven, Arcaplanet is expected to hit €700 million ($736.7M) in revenue in 2024.
Looking ahead
The strategic alliance with Cinven is also expected to enhance Fressnapf’s influence across Europe. “This will enable the company to enhance its innovative offerings and consolidate its market leadership across Europe,” the company notes.
A recent report by multinational firm S&P Global states that purchase of Arcaplanet will “reinforce” Fressnapf’s strong position in the European market. However, the analysis added that as the brands will be managed separately, personnel savings will be limited in the short term.
The German pet retailer posted €4 billion ($4.2B) in turnover last year, which is forecasted to grow to €4.8 billion ($5.1B) by the end of 2024.
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