Company based in Hungary for sale for an insane price

Private equity firm Cinven has selected Bank of America and Goldman Sachs banks to handle the potential sale of Hungary-based Partner in Pet Food. The price is insane.

Company for sale

Portfolio wrote that a private equity firm is exploring the possibility of selling a Hungary-based pet food manufacturer company. Information so far suggests the sale price would be above EUR 2 billion, but no final decision has been made on the sale of Partner in Pet Food. This information was provided by anonymous sources to Bloomberg. Representatives of Cinven, Bank of America and Goldman Sachs refused to comment. The price might sound extremely high, but it might be a good investment in the future.

Partner in Pet Food

Partner in Pet Food is a leading pet food company in Europe. The company produces branded pet food and own-label products for retailers. The company can be associated with brands such as PreVital, Bozita, Shelma or Reno. The company’s portfolio is quite wide; they provide grain-free products, as well as special food for sterilised pets, and pet food rich in fresh meat. The company is also committed to sustainable production. Their website says:

PPF is headquartered in Hungary and has operations in ten countries: The Netherlands, Hungary, Czech Republic, Slovakia, Poland, France, Italy, Romania, Sweden, Germany. With eleven factories across Europe, PPF is the only market operator with an integrated pan-European production network. The network enables us to deliver products efficiently to our customers when and where they are demanded. Currently, we distribute our products to more than 600 customers, including supermarkets, specialist pet shops, and veterinarians across 40 countries.

Partner in Pet Food produces more than 450,000 tonnes of pet food every year. This amount is distributed in 38 European countries, according to the Cinven website. The company was acquired by a private equity firm in 2018.

Great investment?

Bloomberg estimates that the global market for pet care will grow from USD 320 billion to nearly USD 500 billion by 2030. Thus, private equity firms are keen to capitalise on this growth. Apollo Global Management last month agreed to buy a minority stake in North American pet retailer PetSmart from BC Partners, and in 2021, Hellman & Friedman and EQT AB teamed up to buy Germany’s Zooplus. Meanwhile, EQT agreed earlier this year to acquire the British veterinary pharmaceutical company Dechra Pharmaceuticals.