In 2020, the COVID-19 pandemic altered the character of mergers and acquisitions in the pet food industry as buyers may have looked for brands plugged into the new normal of e-commerce, remote work and social distancing. Dog, cat and other pet owners shifted buying channels rapidly as movement restrictions limited brick-and-mortar buying options, especially boosting internet sales.
Mergers and acquisitions in the pet food industry slowed during the ongoing pandemic. By the end of the third quarter of 2020, merger and acquisition activity in the pet food sector had declined 10.3% compared to the same period in 2019, according to Capstone Headwaters report “Pet humanization accelerates through COVID-19.” However, the pet food industry’s decline paled in comparison to that of overall M&As at 40% in the same period, suggesting the pet sector continues to prove resilient to economic and social disruption. Private equity purchases made 51% of deals in the pet care sector during the first three quarters of 2020.
3 characteristics that pet food M&A buyers look for in pandemic, according to Headwaters' report:
- strong omnichannel sales capabilities,
- health and safety-centric products,
- brand recognition
While pet food brands tended to withstand the pandemic’s economic fallout better than travel and food service industries, the pandemic disrupted and altered projections. M&A activity declined in 2020, but nevertheless these 27 mergers and acquisitions occurred in the pet food industry among makers and suppliers.
1. United Petfood acquires Italian private label Effeffe
January 10, 2020
United Petfood, international dog and cat food producer, acquired Italian company Effeffe Petfood.
2. Iansa of Chile sells pet food business to Camil of Brazil
January 24, 2020
Empresas Iansa’s sale of its pet food business to Camil of Brazil represents 20% of Chile’s pet food consumption and strengthens Brazil’s position in Chile.
3. Whitebridge Pet Brands acquires Cardinal Pet Care
January 27, 2020
Whitebridge Pet Brands, a maker of natural and minimally processed pet foods, treats and complements, completed the acquisition of Cardinal Laboratories, Inc.
4. How C.J. Foods’ buy of American Nutrition boosts brands
February 28, 2020
C.J. Foods, superpremium pet food manufacturer, will benefit from a wide geographic footprint and massive production volume, once C.J. completes the acquisition of American Nutrition.
5. Tollden Farms raw pet food acquisition during pandemic
March 27, 2020
Increasing numbers of remote workers may create opportunities for dog, cat and other pet food companies, as pet owners spend more time at home with their animals.
6. Purina acquires UK natural pet food maker Lily’s Kitchen
April 1, 2020
Lily's Kitchen recently expanded into the Middle East and Asia and already has a growing presence in France, Spain, Italy, Netherlands, Switzerland and Germany.
7. United Petfood acquired IAMS Netherlands pet food facility
April 13, 2020
The site currently manufactures the IAMS and EUKANUBA brands and will continue to do so. United Petfood merely is taking over the plant.
8. Aliments Mackenzie acquired Karnivor raw pet food brand
April 30, 2020
Aliments Alternatifs 2000 inc. and its registered brand Karnivor were founded in 1999 with the mission of providing animals with food adapted to their physiology and that aligns with their carnivorous nature.
9. United Petfood to acquire Netherlands-based Jonker Petfood
May 6, 2020
International pet food producer United Petfood signed a letter of intent for the acquisition of Jonker Petfood in Waalwijk, the Netherlands.
10. Barentz International enters pet food ingredient business
May 11, 2020
The company announces its acquisition of pet food ingredient supplier Chicago-based Ingredients Inc.
11. C.J. Foods, American Nutrition now named Alphia
June 9, 2020
Alphia has a portfolio of pet food and treats. The company has a national footprint of 10 locations across 6 states.
12. DSM acquires Biomin and Romer Labs with Erber Group
June 12, 2020
Austrian-based Erber Group offers DSM the opportunity to enter the mycotoxin risk management market.
13. Alphia blending legacies in merger during pandemic
June 23, 2020
The combination of C.J. Foods and American Nutrition into Alphia earlier this month also included LANI and Veracity Logistics.
14. Partner in Pet Food acquiring Doggy pet food company
July 7, 2020
Partner in Pet Food, based in Budapest, Hungary, announced the acquisition of Swedish pet food manufacturer Doggy and its brands Bozita, Bozita Robur and Doggy & Mjau from Lithuania-based investment company NDX Group.
15. Manna Pro Products acquires Doggie Dailies
August 17, 2020
Manna Pro Products acquires Doggie Dailies.
16. IK Investment Partners acquires Forthglade pet food
September 28, 2020
This is the first investment by IK’s newly established UK team. Financial terms of the transaction are not disclosed.
17. Vafo Group acquires Carry Petfood dog chew maker
October 2, 2020
Carry Petfood was established in 1992 as Weidaer Hundekauartikel, but changed its name in 2009.
18. A&M Capital Partners acquires majority interest in BrightPet Nutrition Group
October 5, 2020
Under the new partnership with AMCP, several members of the Golladay family will maintain their roles as BrightPet executives and minority owners. As part of the acquisition, current President Matthew Golladay has been promoted to Chief Executive Officer.
19. Schenck to acquire Baker Perkins pet food equipment maker
October 19, 2020
Schenck Process Group has reached an agreement to acquire Baker Perkins, a global supplier of food processing equipment and aftermarket services for pet food and other markets.
20. Breeder’s Choice Pet Foods bought by investor group
October 26, 2020
Breeder’s Choice Pet Foods, a manufacturer of specialty super-premium dry dog and cat foods, announced today it has been purchased by 30-year pet food veteran Joey Herrick and is becoming an independent business once again.
21. Spectrum Brands acquires Armitage Pet Care in UK
October 28, 2020
Missouri, USA-based Spectrum Brands acquired Armitage Pet Care based in Nottingham, Great Britain, producer of brands Good Boy, Meowee!, Wildbird and Wafcol.
22. Agras acquires Cerere dry dog, cat food maker in Italy
November 5, 2020
With this operation Agras consolidates its presence in the dry segment, now overseeing the entire value chain from production to market with its flagship brand Schesir.
23. Carlyle Group acquires pet food maker Manna Pro Products
November 11, 2020
The Carlyle Group acquired a majority stake in Manna Pro Products from investment funds managed by Morgan Stanley Capital Partners. Financial terms of the transaction were not disclosed.
24. H&H Group of Hong Kong acquires US-based Solid Gold Pet
November 18, 2020
Health & Happiness Group International Holdings (H&H Group) acquired St. Louis, Missouri, USA-based Solid Gold Pet for US$163 million.
25. Clearlake acquires WellPet dog and cat food, treats
November 18, 2020
Clearlake Capital Group, L.P. signed a definitive agreement to acquire WellPet, a maker of several pet food and treat brands.
26. J.M. Smucker selling Natural Balance brand to investors
December 4, 2020
The J.M. Smucker Co. announced Friday it has entered into a definitive agreement to sell its Natural Balance premium pet food business to Nexus Capital Management LP, in a cash transaction valued at approximately US$50 million.
27. TA Associates private equity buys Mid America Pet Food
December 16, 2020
Petfood Industry profiled Mid America Pet Food, writing that the company prides itself on its affordable premium pet food.
