Personal-equity agency CVC Capital Companions has acquired a majority share in Hungary-based Associate in Pet Meals.
Monetary particulars weren’t disclosed.
The bulk stake within the pet-food firm has been bought by Cinven Group, one other private-equity agency, however the investor will stay a shareholder in Associate in Pet Meals.
The pet-food maker had been owned since 2018 by Cinven.
Associate in Pet Meals, arrange in 1999, sells into greater than 35 nations in Europe, in line with CVC. The corporate provides moist and dry pet meals for cats and canine to over 280 clients, together with retailers, specialist pet chains and on-line clients.
The Budapest-based enterprise manufactured circa 700,000 tonnes of pet meals and had revenues of roughly €800m ($857m) in 2023, CVC mentioned in an announcement in the present day (28 June).
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Gerald Kuehr, CEO of Associate in Pet Meals, mentioned: “We’re delighted that CVC will turn into our new majority shareholder as we proceed our profitable premiumisation technique supplemented by an accelerated M&A path, which we began 4 years in the past.
“In CVC, we welcome a companion that’s absolutely supportive of our ardour for folks and pets in a wholesome surroundings and this may improve our potential to proceed producing wholesome merchandise for our finish customers. My colleagues and I are wanting ahead to the following chapter of Associate in Pet Meals’s profitable development journey with CVC.”
In March, a report from The Monetary Instances, quoting unnamed sources, prompt buyers Introduction Worldwide and CVC Capital Companions had made a joint bid for Associate in Pet Meals after making particular person approaches.
Considered one of The Monetary Instances’ sources mentioned Cinven had beforehand been trying to worth the corporate at round €2bn.
Nonetheless, a supply for Simply Meals, who requested to not be recognized, said shortly after that Cinven had determined to pause the discussions with bidders, deeming the presents for Associate in Pet Meals to be undervalued given the market potential.
István Szőke, CVC managing companion, mentioned in the present day: “We’ve got been monitoring this firm for over a decade and have been impressed by its transformation right into a pan-European champion below Gerald’s management.
“Whereas Associate in Pet Meals represents our first Hungary-headquartered funding, now we have important expertise within the broader area and the sector via present investments in our world private-equity enterprise.”
The deal is anticipated to be accomplished within the CVC’s third quarter of 2024.