Pet Pawr Group to become the second-largest Nordic pet retailer after merger

Stockholm-based Pet Pawr Group (PPG) has announced a merger with Norwegian retailer PetXL Group, solidifying its position as the second-largest pet retailer in the Nordic region with a combined turnover of SEK 1.1 billion ($100M/€95.1M).

Under the agreement, PetXL will operate as a wholly owned subsidiary of PPG, while Karbon Invest, PetXL’s current majority shareholder, will become the group’s largest shareholder.

“By integrating PetXL into PPG, we not only strengthen our position in the Nordic pet care market but also create the scale necessary for sustainable growth,” says Christer Åberg, CEO of Pet Pawr Group.

Recovering PetXL’s financials

The merger aims to streamline costs, enforce structural changes and improve PetXL’s profitability following a challenging financial period.

Åberg informs GlobalPETS that short-term plans primarily revolved around cost and margin initiatives in areas with substantial potential. At the same time, the company’s long-term priority remains to enter a profitable cost structure and boost growth.

Peter Tichelaar has been appointed as the Managing Director of the Norwegian group.

Shifting ownership

PetXL’s veterinary division, VetXL, will transition to independent ownership under Karbon Invest and the Norwegian agriculture cooperative Fellesköpet.

Despite this, VetXL will continue collaborating with PPG, which plans to lease 10 new locations for expansion alongside 6 additional openings.

Åberg confirms that 1 new store is set to open in Q1 2025.

“Right now, we do not plan any more openings but are focused on getting PetXL right. We do expect to get back to further store openings as of H2 2025”, he adds.

Nordic-Omni vision

PPG and PetXL are expected to combine resources, scale, expertise and market research to deliver value to customers and stakeholders while pursuing a shared “Nordic Omni-vision.”

At present, the combined capabilities give PPG a strong presence in over 5 markets, with 60% of sales through retail and 40% online.

“Mergers and acquisitions have been a key part of our growth journey, and both greenfield investments and M&A will continue to drive our strategy moving forward,” Åberg concludes, highlighting recent margin improvements across PPG as a model for PetXL’s future success.