Inspired Pet Nutrition has snapped up Barking Heads dog food maker Pet Food UK as part of a buy-and-build strategy to create a player of significant scale in the category.
It gives private equity firm Piper an exit from its 2017 investment in Pet Food UK, when it paid £5m for a 40% stake.
IPN owner CapVest said the deal was the start of “an ambitious growth strategy”, which would see IPN build scale and internationalise over the coming years.
Founded in 2009, Pet Food UK sells premium dog and cat pet food and treats in the UK and overseas, with brands including Barking Heads and Meowing Heads, as well as ‘uber-premium’ AATU.
IPN, best known for its natural dog meals and pet treats under the Harringtons and Wagg brands, was acquired by CapVest in December 2020.
CapVest partner Kate Briant said the deal was the first step in an active acquisition-led growth strategy.
“Pet Food UK is a fantastic addition to IPN, which helps broaden and supplement our offering,” she added.
“It adds high-quality brands to the portfolio, creates access to new segments and geographies and unlocks more distribution channels to further enhance our growth prospects.”
CapVest previously employed its buy-and-build strategy with Valeo, selling the Irish ambient foods giant to Bain Capital, and also mixed protein platform Eight Fifty Food Group, which was taken over by Sofina Foods earlier this year.
IPN CEO James Lawson said Pet Food UK was “highly complementary” to the business and its values.
“This acquisition is consistent with our vision to create a unique portfolio of loved and sustainable pet care brands helping make quality pet care affordable and accessible to all. PFUK brings to IPN highly recognised super and uber-premium brands with a strong digital presence to augment our strong product portfolio and distribution channels.”
Revenues at Pet Food UK have more than doubled since Piper invested, growing from about £10m at the start of 2017.
Piper investment director Rory Gibbs said significant growth was achieved by developing the company’s digital-first business. Almost 60% of sales are now generated online, compared with just 10% in 2017.
“The interest in Pet Food UK is testimony to the appeal of its brands, the quality of its pet food and the work done in recent years to build a loyal customer base,” he added.
The deal, which was for an undisclosed sum, is expected to complete in the coming weeks.
IPN was advised by DLA Piper, OC&C and KPMG, while Piper and the other selling shareholders of Pet Food UK were advised by Houlihan Lokey and Womble Bond Dickinson.
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