In June, Advent International completed its acquisition of Partner in Pet Food (“PPF”), a leading European manufacturer of pet food, from Provimi Group for an enterprise value of €188 million.
Headquartered in Budapest, Partner in Pet Food (formerly Provimi Pet Food) is the third largest producer of private label wet and dry pet food in Europe, supplying approximately 280 customers, including major grocery retailers across 27 markets. In 2010, the company reported total sales of €236 million. PPF currently holds a strong position in Hungary, The Netherlands, Poland, the Czech Republic and Slovakia.
The growth of the private label pet food market in Central and Eastern Europe is expected to significantly outpace GDP growth over the coming years, driven by higher consumer purchasing power, demographic changes leading to higher pet ownership, as well as increasing acceptance of private label goods by consumers.
Advent’s value creation plan will build upon PPF’s strong foundations, partnering with the management team to take advantage of growth opportunities across Europe. The focus will be on increasing PPF’s market share through organic growth as well as developing a new range of products and services.
The investment draws upon Advent’s long experience of conducting complex, multi-national transactions as well as the strong global experience of investing in the retail and consumer sector. Advent can also capitalize on an established presence in Central and European markets.