South African retail giant Woolworths acquires 93% of Absolute Pets

Woolworths Holdings Limited (WHL) is set to acquire 93.45% of South African pet retailer Absolute Pets from current owner Sanlam Private Equity.

Through the acquisition, South Africa’s largest retail group is opening itself up to the pet retailers’ network of over 150 stores as well as its online service and pet services.

A spokesperson from the company, which also owns a South African luxury department store chain, told GlobalPETS that the new business deal enables them to “accelerate WHL’s pet strategy to become the end-to-end pet care destination of choice in South Africa.”

Woolworths CEO Roy Bagattini added that both companies are a “natural fit” and added that the Absolute Pets brand “has earned the trust of pet owners across South Africa.”

Joining forces

Absolute Pets CEO Stephen Warner and his management team will continue leading business operations. “We are delighted to be joining forces with a brand like Woolworths,
whose vision and values are so closely aligned with our own,” he says in conversation with GlobalPETS.

According to Warner, the acquisition will help accelerate the growth of Absolute Pets “in terms of store roll-out, product development, operational efficiencies and best retail practice.”

The pet retailer’s CEO did emphasize that the timeline for the deal “is subject to various approvals including the approval from the South Africa competition authorities.”

In its fiscal year (FY) results ending 30 June 2023, Absolute Pets posted an increase of 7% in revenue to R85.7 billion ($4.57B/€4.34B). Profit before tax hit R6.7 billion ($357.8M/€339.4M), which was a 29.5% increase from 2022.

In a recent interview with GlobaPETS, Warner said that in the last 5 years Absolute Pets added 90 stores and its revenue jumped by 300%.