Partners Group Acquires UK Pet-Food Business MPM from 3i in £400m Deal

Partners Group has agreed to buy UK pet-food business MPM Products from 3i for approximately £400m ($538.2m). MPM's sales and EBITDA have more than doubled since 3i's investment in 2020, with international sales accounting for nearly 80% of revenues. The cat-food sector is benefiting from thematic tailwinds, including increased pet ownership and premiumization of purchases. The transaction is expected to be completed in Q3 2023.

Partners Group has agreed to purchase UK pet-food business MPM Products from 3i for approximately £400m ($538.2m). The transaction, expected to be completed in the third quarter of 2023, positions Partners Group to capitalize on the growing demand for premium pet food products [2].

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 [2].

Since 3i's investment in 2020, MPM's sales and EBITDA have more than doubled. International sales now account for nearly 80% of MPM's revenues across the US, EMEA, and APAC regions [1]. The cat-food sector is benefiting 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 [2].

Nicholas Caronna, member of management, Private Equity Goods & Products, Partners Group, said, "The cat food sector has strong fundamentals as cat ownership continues to rise across developed countries. 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" [2].

The transaction is subject to customary regulatory approvals and is expected to be completed in the third quarter of the year [1]. Julian Bambridge, MPM's CEO, said, "Feeding is one of the key moments when owners interact with their cats, which reinforces a desire to provide something special at these times. 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" [2].

References:
[1] https://finance.yahoo.com/news/partners-group-buys-uk-pet-182518389.html
[2] https://www.petfoodindustry.com/news-newsletters/pet-food-news/news/15748855/partners-group-to-acquire-mpm-products-global-pet-food-business