BDO advises on trio of pet deals

BDO has completed a trio of pet transactions in the past two months as the team continues to cement its reputation in the consumer sub-sector.

The firm provided advice on the sale of Kennelpak’s retail business, Pets and Friends, to family-owned PSR Trading Ltd, owner of retail chain Just for Pets. 

Pets and Friends includes 19 pet stores, and 17 grooming salons located across the Midlands. 

The acquisition allows Just for Pets to double its existing store estate and expand into new areas of the UK. For Endless-backed Kennelpak, the strategic move allows the company to accelerate the growth of its wholesale and distribution business.

This follows the sale of Thrive – a UK pet food brand providing a ‘no nonsense’ option – to Petbuddy Group, a consortium of eight premium pet food brands based in Stockholm. 

BDO advised Thrive, which has experienced strong growth since the launch of its freeze-dried treats, while continuing to grow its customer base in traditional cat and dog foods, with products in retail chains, ecommerce and veterinary clinics.

The firm also completed financial and tax vendor due diligence services for mid-market private equity firm Inflexion in its sale of Lintbells, a UK-based pets supplements business. 

The business was acquired by Vetnique Labs, backed by Gryphon Investors. Lintbells products are sold under the YuMOVE brand which provides pets with supplements to support joint mobility, digestive health, anxiety, skin and coat and dental. 

Lintbells has expanded significantly in recent years particularly through its direct-to-consumer channel, the US and its acquisition of Walkin’ Pets.

Commenting on the recent deals, Laura McNaughton, M&A partner at BDO, said: “There are some really interesting opportunities for M&A in the pet sector currently with buyers and investors showing a keen interest in brands that are able to offer innovative and trusted products that meet the pet-owning consumer’s needs. 

“These recent deals are excellent examples of impressive brands in a competitive sector and it’s been a pleasure to support the businesses through the next steps on their growth journey as we continue to cement our own track record in the sector.

Paul Finger, founder, Petproject Limited, added: “It was a pleasure to have the BDO team working with us to put the deal together. Their knowledge and experience in our particular sector as well as their overall understanding of what is required was incredibly valuable and their commitment to getting the deal done was exemplary.”