From 2020 to 2022, the pet care industry registered record numbers of M&A deals: 38 in pet care, pet food and veterinary services in 2022, 58 deals in 2021 and 48 in 2020.
In 2023, the industry saw its fair share of activity, but there appears to be a downward trend this year. According to Cascadia Capital’s most recent Pet Industry Overview report, pet industry M&A is muted in 2023. The sectors that drove last year’s growth — supplements, veterinary services — showed volume declines, and in some cases, they were rapid. Except for co-manufacturing, the big strategists stayed on the sidelines, giving consolidation to the private equity community.
Below are the pet food industry mergers, acquisitions and divestitures in 2023.
1. JM Smucker has removed iconic brands
In February, JM Smucker announced it was selling several pet food brands to Post Holdings, a consumer-packaged goods holding company headquartered in St. Louis, Missouri, USA. The transaction includes the Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe, and Gravy Train brands as well as Smucker’s private label pet food business. The deal was finalized in May.
2. Canidae and Natural Balance have merged to form Ethos Pet Brands
The combination of Canidae and Natural Balance pet food company in March was a true merger, with both companies retaining their individual brands. In August, the combined company announced it would be called Ethos Pet Brands. Investment firms L Catterton and Nexus Capital Management have 50-50 ownership of the combined organization. Ethos was the original name of Canidae’s manufacturing facility in Brownwood, Texas, USA. The Brownwood facility opened in 2012 and will now manufacture products for both brands.
3. L Catterton invests in Drools Pet Food
L Catterton announced in June that it has invested approximately $60 million in Drools Pet Food, a leading local pet food company in India.
4. BrightPet gets the Raw Advantage
BrightPet Nutrition Group, backed by A&M Capital Partners, a private equity firm, continued its acquisitions in June by purchasing Raw Advantage Processing, a family-owned co-manufacturer of freeze-dried and frozen raw food and pet food in Oregon.
5. Topspin acquires Three Dog Bakery’s consumer products
Also in June, private equity firm Topspin Consumer Partners acquired the consumer products division of Three Dog Bakerywhich creates humanized dog treats sold at traditional and online retailers.
6. Alphia has partnered with Better Choice
Alphia Inc., a US-based custom manufacturer of superpremium pet food, announced a strategic partnership with Better Choice, a pet health and wellness company, in June. Includes a US$5 million investment made by Alphia in Better Choice, Alphia will become the manufacturer for its flagship brand, Halo, a superpremium pet food brand found in specialty pet stores.
7. Private equity is selling Alphia to another group
In August, private equity firm PAI Partners agreed to buy Alphia Inc. from its owner JH Whitney Capital Partners. PAI Partners is a private equity firm based in Paris. Alphia is PAI Partners’ second major acquisition in the US The French private equity firm acquired Tropicana from PepsiCo in 2021. JH Whitney Capital Partners (JHW) has owned CJ Foods since 2014 and acquired Lortscher’s Animal Nutrition ( LANI now) in 2018.
8. Cargill re-enters the pet food market
In August, Cargill a well-known name in the animal feed sector, expanding its horizons by re-entering the pet food market in Mexico. As part of this effort, the company is giving a new look to three pet food brands: Pingo, Keycan and Petmaster.
9. Sunshine Mills purchased a Red Collar facility
Sunshine Mills, an Alabama-based pet food and treat maker, has acquired the Red Collar Pet Foods plant in Joplin, Missouri, USA, in August. The facility will increase the production capacity of Sunshine Mills’ baked and chilled pet treats. The 200,000 square foot plant employs about 130 people.
10. Anchor Ingredients expands space with grain facility acquisition
Anchor Ingredients, a provider of ingredients for the pet food industry, has acquired a grain handling facility in Hatton, North Dakota, USA, in August. Headquartered in Fargo, North Dakota, Anchor said this facility will allow it to expand its ingredient portfolio and processing capabilities.
11. Post Holdings to get Perfection Pet Foods
Announced in October, Post Holdings, a consumer-packaged goods holding company based in St. Louis, Missouri, USA, intends to acquire the assets of Perfection Pet Foods for US$235 million. The acquisition includes two Perfection manufacturing facilities located in Visalia, California. These facilities will provide Post with expanded manufacturing capabilities, allowing the company to bring a portion of its existing pet food business in-house. Upon completion of this acquisition, Perfection will be integrated into the Post Consumer Brands segment.
12. Voff Pet Food buys Dutch Carnibest
Swedish-based Voff Premium Pet Food acquired dog and cat food manufacturer Carnibest for an undisclosed sum in October. With the acquisition of Carnibest’s Ermelo production site, Voff now has a total of nine manufacturing facilities.
13. Central Garden and Pet got TDBBS
Central Garden and Pet acquired TDBBS from Bregal Partners in early November. TDBBS is a provider of premium natural dog chews and treats. The addition of TDBBS will expand Central’s portfolio with bully and collagen sticks, bones and jerky, and further strengthen Central’s e-commerce and digital capabilities. TDBBS is based in Richmond, Virginia, USA.
14. General Mills acquires Fera Pets, enters the pet supplement space
In November, General Mills acquired Fera Pets, Inc., a veterinarian-founded pet supplement company, bringing new health-focused offerings to General Mills’ pet portfolio. The acquisition of this pet product company represents General Mills’ first foray into the pet supplement category and the first acquisition of its newly launched growth equity fund.
15. Antelope Got My Perfect Pet
Antelope, a provider of premium pet care products and services, acquired My Perfect Petwhich offers nutritionally balanced pet food made from ingredients such as beef, turkey, broccoli and cranberries, in early December.
16. A Pub Above partners with Generation Pet
A Pup Above, a provider of gently cooked dog food, announced a distribution partnership with Generation Pet in December that brings A Pup Above foods to the Northeast region.
17. Assisi Pet Care partners with Burns Pet Nutrition
Acquired Assisi Pet Care Group Pet Nutrition Burns in an undisclosed deal in mid-December. Burns, founded by John Burns MBE 30 years ago, is committed to pet health through renowned, high quality dry and wet dog food, expanding the cat product range.
18. Tom&Sawyer partnered with Freedom Pet Supplies
Also in mid-December, Tom&Sawyer, provider of AAFCO Human Grade pet meals in Canada, announced its partnership with Freedom Pet Supplies. This partnership aims to expand the distribution of its quality pet food across Canada, focusing on Ontario, Quebec and the Maritimes.
