Private Equity Deals & Transactions

Advent offloads pet food manufacturer to Pamplona

The deal values the Budapest-headquartered Partner in Pet Food at €315 million

-

Global buyout house Advent International has agreed to sell private-label pet food manufacturer Partner in Pet Food to Pamplona Capital Management in a deal valuing the business at €315 million, according to a statement from the firm.

The return on investment was not disclosed. Advent declined to comment on returns.
PPF offers a range of cat and dog food products, including dry food, cans, alucups, pouches and snacks. The company has eight production facilities across Europe, and supplies international and local retailers in more than 37 countries.

Advent acquired the Budapest-headquartered business from Permira in 2011 for €188 million through a corporate carve-out from Provimi Group, using capital from its €1 billion Advent Central and Eastern Europe IV.

Advent backed the original management team to rebrand the company and establish a standalone corporate structure, increase the company’s footprint across Europe and introduce new product lines. As well as consolidating its position in Central and Eastern Europe, PPF has entered new markets, including Italy and Scandinavia, and increased its presence in the UK, Germany, France, Slovenia and Croatia.

Under Advent’s ownership, sales increased both organically and through the acquisition of Agro-Trust in 2013, which enabled PPF to enter the alucup pre-packaged segment. Profitability also stemmed from operational improvements and product innovation, particularly through focusing on developing single-serve products.

Pamplona is currently investing its fourth private equity fund, Pamplona Capital Partners IV, which held a final close on €3 billion in June 2014. The firm can invest across the capital structure and can invest in both public and private companies. Investments in Fund IV include a 27.84 percent stake in Octo Telematics, BBB Industries, a remanufacturer and distributor of automotive parts in the US, and polyethylene films producer Charter NEX.

Pamplona will also back PPF’s current management team, and plans to accelerate product innovation across the company’s private label and branded offerings, as well as looking to grow further innovations and acquisitions in Western and Central Europe.