Partners Group, a global private markets firm, has acquired MPM Products, a premium cat food manufacturer, from investment firm 3i. The company said the transaction positions Partners Group to capitalize on growing demand for premium pet food products.
MPM Products, headquartered in the UK, operates premium wet cat food brands including Applaws, Reveal and Encore. The company focuses on products made with real meat and fish, natural ingredients, and sells in over 50 countries with strong positions in North America and Europe through both e-commerce and retail channels.
"The cat food sector has strong fundamentals as cat ownership continues to rise across developed countries," said Nicholas Caronna, member of management, Private Equity Goods & Products, Partners Group. "The market has also been resilient across economic cycles. MPM has made tremendous strides to expand geographically, and we look forward to supporting the team in this continued growth."
Partners Group noted it plans to work with MPM's existing management team to accelerate growth through expanded sales in current markets, operations in new markets, and strengthened supply chain capabilities.
"We have been tracking the pet food market as part of our broader thematic research into the 'humanization' of pets," said Thomas Clark, managing director, Private Equity Goods & Products, Partners Group, "We believe there is a significant growth opportunity in the premium cat food segment as this has historically been underserved by incumbent producers that are primarily 'dog focused'. We look forward to working with management and the wider MPM team on our value creation plan."
Cat food sector benefits from several thematic tailwinds
According to Partners Group, the cat food sector is benefitting from several thematic tailwinds, including delayed family formation leading to increased pet ownership, the premiumization of products, and resilience due to the essential need of feeding pets. The benefits of wet cat food, including higher moisture content, easier digestion, and enhanced palatability, is further driving the growth of premium products, which is where MPM's sales are focused.
"Feeding is one of the key moments when owners interact with their cats, which reinforces a desire to provide something special at these times," said Julian Bambridge, CEO, MPM Products. "At MPM, our goal is to enrich the lives of pets and owners through visibly better food that uses the highest quality natural ingredients and provides core health benefits. We are excited to continue our strong growth under Partners Group's ownership."
According to Petfood Industry's Top Pet Food Companies, MPM Products is a UK producer of premium, all natural pet food. The company exports to more than 30 countries in Europe, Asia and North America, including the U.S.
