Undervalued deal? Talks to sell Partner in Pet Food have reportedly been put on hold
CVC Capital Partners and Advent International recently submitted a joint bid to acquire the European pet food business. Now, the future of the operation is unclear.
According to Bloomberg, British private equity (PE) firm Cinven—which acquired Partner in Pet Food (PPF) in 2018—has put the sale of the pet business on hold due to a disagreement in the bidding price.
Sources indicate that the owner believes the portfolio company is “undervalued.” Cinven was reportedly seeking a valuation of €2 billion ($2.16B) for the sale of the assets.
The Financial Times, which first broke the news of the bid, said that talks were ongoing and that sources familiar with the matter had stated there was no certainty that a deal would be finalized.
US-based global PE firm Advent International previously owned the pet food maker between 2011 and 2015 before selling it to Pamplona Capital Management for €315 million ($340.8M).
CVC Capital Partners and Partners in Pet Food declined to comment, while Advent did not respond to GlobalPETS’s request for an interview.
Operating in 38 countries
Established in Hungary in 1999, Partners in Pet Food produces more than 450,000 tons of pet food annually. The company exports its products to over 250 customers across 38 European countries, including traditional retailers, discounters, specialty pet retailers and online specialists.
Its main products include both dry and wet cat and dog food and single-serve products.
The company, with headquarters in the country’s capital of Budapest, employs more than 1,400 people.
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