Page 3 - PET worldwide issue 1/2021

Comment

Coronavirus accelerates

consolidation wave

Up to now, the pet supplies sector has survived H & H Group from Hong Kong. The speciality chain
the coronavirus pandemic remarkably well. While Pet Supplies also has a new proprietor in the
many business branches have struggled during Franchise Group.
lockdowns and contact restrictions, sales of pet In Europe, the pet supplies market is likewise
food and accessories have boomed in every region experiencing a process of consolidation, although
of the world. At a time when indulging in popular the acquisitions are being instigated chiefly by
leisure pursuits such as travel, going out and players aiming to gain a stronger foothold. Europe’s
leading pet retailer Fressnapf has pounced in Den-
mark and snapped up the Pet World store chain,
while in Italy, Ferplast has bought up its former
competitor Marchioro. Hungary-based pet food

The longer the coronavirus pandemic
continues, the more likely it is that the
number of acquisitions and mergers
will rise, even in the pet sector

manufacturer Partner in Pet Food has swallowed
up the Italian company Landini Giuntini, and the
Czech pet food manufacturer Vafo has taken a
minority share in the UK enterprise Pooch & Mutt.
attend ing sports and cultural events has been vir- One move that has attracted particular attention is
tually impossible, people across the planet are fo- the purchase by Peruvian investor group Emefin of
cused instead on turning their homes into a pleas- the Animalis pet retail chain in France, following
ant and comfortable refuge. For many, this in- its earlier acquisition of Spanish pet store chains
cludes the desire to own a pet. In some countries, Kiwoko and Tiendanimal. The takeover is another
the dog and cat population has risen by 20 per indication of the growing degree of concentration
cent or more during the pandemic. Demand for in European pet product retailing.
small animals, ornamental fish and even reptiles This is probably just the start of a wave of con-
has also increased significantly. solidation. The longer the coronavirus pandemic
As was the case during the last recession, the continues and the harder the global economy is
pet sector has once again proved extraordinarily hit by its consequences, the more likely it is that
crisis-proof in the face of the coronavirus. As a re- the number of acquisitions and mergers will rise,
sult, it has become a more attractive target for pri- even in the pet sector.
vate equity companies and investors. Safe, relia-
ble investment opportunities have been thin on
the ground in these uncertain times; innovative
pet product firms with a proven track record are Ralf Majer-Abele
thus in considerable demand. The USA in particu-
lar has seen a number of takeovers in recent
months, with the Clearlake Capital Group acquir-
ing pet food manufacturer Wellpet and the holistic Phone +49/72 43/575-230
E-Mail r.majer-abele@daehne.com
nutrition provider Solid Gold Pet being sold to the

PET worldwide 1|2021 3

PWW2021-01_Buch.indb 3 12.02.2021 13:02:51