In the pet industry, the pace of acquisition activity continued to slow in 2024 due to a combination of industry environment and acquirers being more diligent and purposeful than ever. Top-performing companies, however, are still being sold for high prices, according to the latest Cascadia Capital Pet Industry Overview.
The report noted for six quarters starting in mid-2020, private equity firms were very active in buying and investing in companies in the pet space. But in early 2022, that activity dropped sharply. The M&A environment steadied in 2022 and 2023, and now in 2024, investment activity is starting to pick up again. Since interest rates have gone down and private equity firms have a lot of unused capital for deals, Cascadia noted there’s hope more investments will happen in 2025. According to Cascadia’s report:
- Total U.S. M&A volume has increased in terms of value and volume through Q3 2024 following the lows experienced during 2023. With recent interest rate cuts, the transaction environment is poised to become more favorable to getting deals done in 2025.
- Buyers are still paying high prices for high-quality assets, but these have been relatively scarce over the past 12 to 24 months. As market conditions improve, more high-quality businesses — especially those owned by private equity firms looking to make a profit — are expected to go up for sale.
- The pet industry is set for a surge in deals in 2025, thanks to better market conditions, more high-quality businesses for sale, and motivated buyers and sellers.
Below is the pet food industry merger and acquisition activity from the past year as reported by Petfood Industry.
1. United Petfood acquires De Haan Petfood
In late December 2023, Belgium-based United Petfood acquired De Haan Petfood, which is located in Nieuwkoop, The Netherlands, and specializes in wet dog and cat food.
2. United Petfood acquires Vital Petfood Group
In January, United Petfood also signed a share purchase agreement for the acquisition of Vital Petfood Group in Ølgod, Denmark. Vital Petfood Group produces dry and semi-moist cat and dog food for private labels and its own brands, Go Care and Go Care Royal.
3. Pet MD Brands finalizes Riley’s acquisition
In January, Pet MD Brands, a subsidiary of Swedencare AB, acquired Riley’s, for US$7.5 million ($78.4 million SEK). Based in Odessa, Florida, Riley’s specializes in premium dog treat offerings, which include organic varieties and single-ingredient formulas in jerky and baked biscuit formats.
4. Novozymes, Chr. Hansen merger completed, creating Novonesis
On February 1, the proposed combination of the legacy companies Novozymes and Chr. Hansen was successfully completed, establishing Novonesis, a global biosolutions partner for the pet industry.
5. The Petfood Company is acquired by a German meat processor
In February, Westfleisch, Germany’s second largest meat marketer, expanded its range of pet food products with the acquisition of The Petfood Company. Based in Bocholt, Germany, The Petfood Company filed for insolvency at the end of 2023. Westfleisch has offered dry chewing products for pets for several years with its subsidiary, Dog’s Nature, available in Europe and the U.S.
6. ProMach acquires Italian equipment supplier
In February, ProMach acquired Zanichelli Meccanica S.p.A., known to the market as Zacmi, a Parma, Italy-based manufacturer of filling, seaming and pasteurization technology for the pet food industry.
7. Duravant expands protein processing solutions with Henneken acquisition
In March, Duravant, a global engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors, acquired Ferdinand Henneken, a leading manufacturer of protein processing solutions headquartered in Bad Wünnenberg, Germany.
8. Alvar Pet buys e-commerce platform
In April, Alvar Pet, a Finnish direct-to-consumer pet food brand, acquired Verkkokauppa Kivuton (Kivuton), a Finnish online store focused on pet health. The acquisition follows the announcement of Juuri Partners joining Alvar Pet as a strategic partner.
9. The Nutriment Company acquires Totally Natural Pet Products
In late April, The Nutriment Company, a provider of premium natural pet food, acquired Totally Natural Pet Products (TNPP), a Scottish raw dog food manufacturer. The acquisition expanded The Nutriment Company’s portfolio of premium natural pet food brands and to further strengthen its position in the Central European market, said the company.
10. General Mills acquires Edgar & Cooper
On April 30, General Mills completed the acquisition of Edgard & Cooper, one of Europe’s leading independent premium pet food brands. Established in 2016, Edgard & Cooper had estimated 2023 retail sales of more than €100 million (US$107 million) across 13 markets.
11. Blue Sky Nutrition acquires Maltwerks
In May, Blue Sky Nutrition acquired Maltwerks’ food and feed merchandising business which it said would help establish the company as a significant player in the supplement, food, pet food and feed industry. Both companies are located in Detroit Lakes, Minnesota, U.S. Blue Sky Nutrition supplies nutraceuticals, proteins, pet food ingredients and dairy ingredients. Maltwerks is a malting business serving breweries, distilleries, and food/feed manufacturers throughout the U.S. and internationally.
12. United Petfood enters the U.S. market with Wellness Pet facility acquisition.
United Petfood entered the U.S. market in June by purchasing a production facility in Mishawaka, Indiana, from Wellness Pet Company. This purchase was a big milestone for United Petfood as it’s their first factory in the U.S. Wellness Pet Company planned to transition production to another of its facilities.
13. Petbuddy Group acquires Thrive Pet Foods
In late June, Petbuddy Group (PBG), a consortium of eight super-premium pet food brands based in Stockholm, Sweden, acquired Thrive Pet Foods. Thrive Pet Foods, with a market presence in Europe spanning over 20 years, added a freeze-dried product portfolio of wet cat and dog food to the company.
14. Vetnique Labs acquires Lintbells and its YuMOVE brand of pet supplements
In July, Vetnique Labs, a pet health and wellness company, acquired Lintbells, known for its YuMOVE brand of pet supplements. YuMOVE, a joint mobility supplement brand in the UK for dogs and cats, also provides supplements addressing digestive health, anxiety, dermatological and dental needs.
15. Pets Choice acquires HOWND
In July, the UK-based Pets Choice acquired premium vegan dog brand HOWND from Power Pet Brands, bringing its line of food, treats and pet care products into its fold. Pets Choice’s family of pet brands also includes Webbox, Bob Martin, Felight, TastyBone and Vet’s Kitchen.
16. The Nutriment Company acquires Natural Instinct
Also in July, Swedish pet food manufacturer The Nutriment Company completed the acquisition of raw pet food processor Natural Instinct, which is based in the UK. Natural Instinct specializes in the production of raw, frozen dog food and natural treats for dogs and cats.
17. Inspired Pet Nutrition acquires Butcher’s Pet Care
Inspired Pet Nutrition (IPN), an independent UK pet food company controlled by CapVest Partners, announced the acquisition of Butcher’s Pet Care (BPC), a manufacturer of wet pet food in late August. BPC offers three brands: Butcher’s dog food, affordable high-quality food for dogs; Blink!, a premium natural wet cat food brand; and Classic, an affordable, natural, complete cat food brand. The deal was completed in October.
18. Vafo Group acquires majority stake in Petco GmbH
In September it was reported that Czech pet food maker Vafo Group took over Austria’s PetCo GmbH, adding a number of premium pet food brands to its growing portfolio. The combination of these two family-owned businesses exceeded €600 million (US$662.5 million).
19. Three Dog Brands acquires Kennelmaster Foods
Also in September, Three Dog Brands (TDB), a Topspin Consumer Partners portfolio company, acquired Kennelmaster Foods, a manufacturer and marketer of savory pet treats. Kennelmaster sells its products under the Chip’s Naturals brand and uses dehydration technology to create differentiated, nutritious and high-protein products.
20. Ollie acquires AI diagnostic company
In October, Ollie, a fresh dog food subscription company, acquired DIG Labs, an AI-powered diagnostic firm specializing in real-time pet health screenings, including stool analysis, weight management and more. In addition, Ollie introduced its new Foodback Loop, a proprietary data-driven process designed to enhance product development and feeding algorithms for healthier dogs.
21. Modern Plant Based Foods expands into pet food market with AnimalKind acquisition
In late October, Canadian-based Modern Plant Based Foods completed the acquisition of AnimalKind, a plant-based pet food company headquartered in British Columbia, through the purchase of all outstanding securities. The company said this move diversifies Modern’s portfolio beyond human food, tapping into the growing demand for sustainable pet products.
22. Pure Treats to acquire Bar W Foods, 18 Below pet foods
Also in late October, Pure Treats, a maker of dog and cat treats, food and toppers, agreed to acquire Bar W Foods and 18 Below and its human-grade meat processing and freeze-drying facility in Fort Worth, Texas, U.S. By integrating 18 Below’s expertise, PureBites may expand its product line and capacity, meeting the growing demand of pet owners looking for RAW freeze-dried pet treats, food and toppers.
23. Premium Petfood Brands acquires Yarrah
In November, Premium Petfood Brands, a pet food brand operating in Belgium, The Netherlands, and Luxembourg, acquired Yarrah, an organic pet food brand. Following the recent bankruptcy of Yarrah, Premium Petfood Brands moved to purchase Yarrah’s portfolio, containing the Smølke and Rodi brands.
24. General Mills acquires Whitebridge Pet Brands
In November, General Mills, Inc. announced a definitive agreement to acquire Whitebridge Pet Brands‘ North American premium cat food and pet treat business from NXMH for US$1.45 billion. The acquisition included brands Tiki Pets and Cloud Star, part of the fast-growing cat food and pet treats segments, which together generate $24 billion in retail sales within the $52 billion U.S. pet food market. General Mills said it aims to expand its footprint in the pet sector, integrating Whitebridge’s offerings with its Blue Buffalo portfolio to strengthen its position in cat nutrition and pet treats.
The transaction marked General Mills’ fifth acquisition in the pet category, following previous acquisitions of Blue Buffalo (2018), Nudges, Top Chews and True Chews (2021), Fera Pets (2023) and Edgard & Cooper (2024).
25. FoodScience pet supplements acquired by private equity
Investment funds managed by Morgan Stanley Capital Partners (MSCP), the middle-market focused private equity team at Morgan Stanley Investment Management, acquired FoodScience, a vertically integrated provider of pet and human nutritional supplements, from Wind Point Partners in late November.
26. Cult Food Science to acquire The Better Butchers
In mid-December, Cult Food Science Corp., a Vancouver-based company focused on lab-grown meat and cellular agriculture, announced plans to acquire The Better Butchers Inc. The Better Butchers, also based in Vancouver, specializes in creating meat alternatives using fungi-based proteins and advanced food technologies. The deal, which will see Cult acquire 100% of The Better Butchers’ shares, is expected to close in February 2025.