Zooplus’ owners reportedly considering sale amid valuation projections decline

Zooplus’ owners reportedly considering sale amid valuation projections decline

According to German media, EQT and H&F are facing challenges in securing a profitable sale of the e-commerce player due to slow growth.

The private equity owners of e-commerce pet retailer Zooplus are reportedly looking to sell the business, but the company’s profit projections have declined.

Competing firms Hellman & Friedman (H&F) and EQT jointly took over Zooplus for €3.7 billion ($3.8B) in 2021, taking the company off the stock market.

Purchased at a high price point – 58 times Zooplus’ operating profit (by EBITDA) – German economic newspaper Börsen-Zeitung notes that it could be difficult to resell for a profit. However, EQT partner Johannes Reichel told the publication in April 2024 that he remained confident Zooplus would be a good deal in the end.

He said the company was looking to sell Zooplus to another company in 2025 or possibly take it back to the stock market with an Initial Public Offering (IPO) in 2026. Now, the owners have decreased Zooplus’ valuation.

By the numbers

According to Lebensmittel Zeitung, another German trade and business paper, Zooplus is growing under EQT and H&F but at a lower rate than expected.

A financial report seen by the Frankfurt-based publication showed a decrease in Zooplus’ valuation after 2023’s numbers. That year, Zooplus posted sales of €2.7 billion ($2.8B), a 12% growth from 2022. However, 2022 saw 14% growth against the previous year.

With a sale still possible in 2025 or 2026, the company has revised its expectations for price-to-sale ratio. Recently, the owners were expecting a ratio between 1.0 and 1.4, according to Lebensmittel Zeitung. That’s roughly between €2.7 billion ($2.9B) and €3.8 billion ($3.9B).

This is a decrease from an earlier valuation in 2022 when the owners expected a ratio between 1.3 and 1.7.

Neither Zooplus nor its owners, H&F and EQT, responded to requests for comment by GlobalPETS.