Petfood Industry - August 2019 - 8

8 | www.PetfoodIndustry.com

Mergers, acquisitions
offer pet food sector growth
M&A activity provides opportunities for expansion, international
growth and diversification of a pet food company's portfolio.
LINDSAY BEATON

I

n the May 2019 issue of Petfood
Industry magazine, we highlighted the
world's top pet food companies. Among
those companies were three with
significant growth in 2018 due to acquisitions - United Petfood Producers,
ADM Pet Nutrition and J.M. Smucker - and
neither the consolidation nor the boost in
growth are surprising. Pet food is a mature
market in several parts of the world, and
while there's still a lot to be said for consumer
growth in the more developing regional
markets, companies making their money
particularly in North America and western
Europe are looking for additional ways to
continue gaining market share.
M&A activity is one of the
ways being taken significant
advantage of (Petfood Industry
reported on 51 different pet
food-related mergers and
acquisitions in 2018).

51 mergers and
acquisitions in
the 2018 pet
food industry
www.PetfoodIndustry.
com/articles/7756

The strategy of M&A
Mergers and acquisitions
provide growth on two fronts.
First, they allow companies
the opportunity to enter new
segments of their market they
weren't in before, which may
increase their overall market
strength. For example, private
label superpremium pet food

manufacturer C.J. Foods purchased ingredient supplier Lortscher Animal Nutrition in
early 2018.
"The purchase of Lortscher Animal Nutrition increases C.J. Foods Holdings' investment
share in the superpremium pet food manufacturing space at a time when our team and
board are very bullish about the future of this
market segment," said Tod Morgan, C.J. Foods
CEO, of the acquisition.
Second, companies can invest in and enter
a new market for the first time, expanding
overall market growth, such as when international private-equity firm Civen acquired
European pet food manufacturer Partner in
Pet Food (PPF) in April 2018.
"The European pet food market is one
of the most attractive spaces in the wider
consumer sector," said Matteo Corà, senior
principal at Cinven, at the time. "PPF is a
highly successful business with further opportunities for growth organically, leveraging its
production capabilities and track record for
product innovation, and through acquisition."

2019 M&A activity so far
There have already been several mergers
and acquisitions in 2019, and some of the
notable events include diversification, international expansion and portfolio expansion as
their motivators.
In June, Manna Pro Products, a manufacturer and marketer of pet care and nutrition,

Kovbasniuk | BigStock.com

August 2019

Industry


http://www.PetfoodIndustry.com http://www.PetfoodIndustry.com/articles/7756 http://www.PetfoodIndustry.com/articles/7756 http://www.BigStock.com

Petfood Industry - August 2019

Table of Contents for the Digital Edition of Petfood Industry - August 2019

Petfood Industry - August 2019
Contents
Pet food market focus: Europe still a global powerhouse
Speaking of…
News and Calendar
Mergers, acquisitions offer growth in pet food sector
Vietnam pet ownership, pet food manufacturing growing
2019 Reference and Buyer’s Guide
Supplier Contacts
Products & Services
New Products
Marketplace
Advertiser’s Index
Petfood Industry - August 2019 - CT1
Petfood Industry - August 2019 - CT2
Petfood Industry - August 2019 - Petfood Industry - August 2019
Petfood Industry - August 2019 - Cover2
Petfood Industry - August 2019 - 1
Petfood Industry - August 2019 - Contents
Petfood Industry - August 2019 - 3
Petfood Industry - August 2019 - Pet food market focus: Europe still a global powerhouse
Petfood Industry - August 2019 - 5
Petfood Industry - August 2019 - Speaking of…
Petfood Industry - August 2019 - News and Calendar
Petfood Industry - August 2019 - Mergers, acquisitions offer growth in pet food sector
Petfood Industry - August 2019 - BB1
Petfood Industry - August 2019 - BB2
Petfood Industry - August 2019 - 9
Petfood Industry - August 2019 - 10
Petfood Industry - August 2019 - 11
Petfood Industry - August 2019 - Vietnam pet ownership, pet food manufacturing growing
Petfood Industry - August 2019 - 13
Petfood Industry - August 2019 - 14
Petfood Industry - August 2019 - 15
Petfood Industry - August 2019 - Supplier Contacts
Petfood Industry - August 2019 - 17
Petfood Industry - August 2019 - 18
Petfood Industry - August 2019 - 19
Petfood Industry - August 2019 - 20
Petfood Industry - August 2019 - 21
Petfood Industry - August 2019 - 22
Petfood Industry - August 2019 - 23
Petfood Industry - August 2019 - 24
Petfood Industry - August 2019 - 25
Petfood Industry - August 2019 - 26
Petfood Industry - August 2019 - 27
Petfood Industry - August 2019 - 28
Petfood Industry - August 2019 - 29
Petfood Industry - August 2019 - 30
Petfood Industry - August 2019 - 31
Petfood Industry - August 2019 - 32
Petfood Industry - August 2019 - 33
Petfood Industry - August 2019 - 34
Petfood Industry - August 2019 - 35
Petfood Industry - August 2019 - 36
Petfood Industry - August 2019 - 37
Petfood Industry - August 2019 - 38
Petfood Industry - August 2019 - 39
Petfood Industry - August 2019 - 40
Petfood Industry - August 2019 - 41
Petfood Industry - August 2019 - 42
Petfood Industry - August 2019 - 43
Petfood Industry - August 2019 - Products & Services
Petfood Industry - August 2019 - 45
Petfood Industry - August 2019 - 46
Petfood Industry - August 2019 - 47
Petfood Industry - August 2019 - 48
Petfood Industry - August 2019 - 49
Petfood Industry - August 2019 - 50
Petfood Industry - August 2019 - 51
Petfood Industry - August 2019 - 52
Petfood Industry - August 2019 - 53
Petfood Industry - August 2019 - 54
Petfood Industry - August 2019 - 55
Petfood Industry - August 2019 - 56
Petfood Industry - August 2019 - 57
Petfood Industry - August 2019 - New Products
Petfood Industry - August 2019 - 59
Petfood Industry - August 2019 - 60
Petfood Industry - August 2019 - 61
Petfood Industry - August 2019 - 62
Petfood Industry - August 2019 - 63
Petfood Industry - August 2019 - 64
Petfood Industry - August 2019 - 65
Petfood Industry - August 2019 - Marketplace
Petfood Industry - August 2019 - 67
Petfood Industry - August 2019 - Advertiser’s Index
Petfood Industry - August 2019 - Cover3
Petfood Industry - August 2019 - Cover4
http://www.petfoodindustry-digital.com/201909
http://www.petfoodindustry-digital.com/201908
http://www.petfoodindustry-digital.com/201907
http://www.petfoodindustry-digital.com/201906
http://www.petfoodindustry-digital.com/201905
http://www.petfoodindustry-digital.com/201904
http://www.petfoodindustry-digital.com/201903
http://www.petfoodindustry-digital.com/201902
http://www.petfoodindustry-digital.com/201901
http://www.petfoodindustry-digital.com/201812
http://www.petfoodindustry-digital.com/201811
http://www.petfoodindustry-digital.com/201810
http://www.petfoodindustry-digital.com/201809
http://www.petfoodindustry-digital.com/201808
http://www.petfoodindustry-digital.com/201807
http://www.petfoodindustry-digital.com/201806
http://www.petfoodindustry-digital.com/201805
http://www.petfoodindustry-digital.com/201804
http://www.petfoodindustry-digital.com/201803
http://www.petfoodindustry-digital.com/201802
http://www.petfoodindustry-digital.com/201801
http://www.petfoodindustry-digital.com/201712
http://www.petfoodindustry-digital.com/201711
http://www.petfoodindustry-digital.com/201710
http://www.petfoodindustry-digital.com/201709
http://www.petfoodindustry-digital.com/201708
http://www.petfoodindustry-digital.com/201707
http://www.petfoodindustry-digital.com/201706
http://www.petfoodindustry-digital.com/201705
http://www.petfoodindustry-digital.com/201704
http://www.petfoodindustry-digital.com/201703
http://www.petfoodindustry-digital.com/201702
http://www.petfoodindustry-digital.com/201701
http://www.petfoodindustry-digital.com/201612
http://www.petfoodindustry-digital.com/201611
http://www.petfoodindustry-digital.com/201610
http://www.petfoodindustry-digital.com/201609
http://www.petfoodindustry-digital.com/201608
http://www.petfoodindustry-digital.com/201607
http://www.petfoodindustry-digital.com/201606
http://www.petfoodindustry-digital.com/201605
http://www.petfoodindustry-digital.com/201604
http://www.petfoodindustry-digital.com/201603
http://www.petfoodindustry-digital.com/201602
http://www.petfoodindustry-digital.com/201601
http://www.petfoodindustry-digital.com/201512
http://www.petfoodindustry-digital.com/201511
http://www.petfoodindustry-digital.com/201510
http://www.petfoodindustry-digital.com/201509
http://www.petfoodindustry-digital.com/201508
http://www.petfoodindustry-digital.com/201507
http://www.petfoodindustry-digital.com/201506
http://www.petfoodindustry-digital.com/201505
http://www.petfoodindustry-digital.com/201504
http://www.petfoodindustry-digital.com/201503
http://www.petfoodindustry-digital.com/201502
http://www.petfoodindustry-digital.com/201501
http://www.petfoodindustry-digital.com/201412
http://www.petfoodindustry-digital.com/201411
http://www.petfoodindustry-digital.com/201410
http://www.petfoodindustry-digital.com/201409
http://www.petfoodindustry-digital.com/201408
http://www.petfoodindustry-digital.com/201407
http://www.petfoodindustry-digital.com/201406
http://www.petfoodindustry-digital.com/201405
http://www.petfoodindustry-digital.com/201404
http://www.petfoodindustry-digital.com/201403
http://www.petfoodindustry-digital.com/201402
http://www.petfoodindustry-digital.com/201401
http://www.petfoodindustry-digital.com/201312
http://www.petfoodindustry-digital.com/201311
http://www.petfoodindustry-digital.com/201310
http://www.petfoodindustry-digital.com/201309
http://www.petfoodindustry-digital.com/201308
http://www.petfoodindustry-digital.com/201307
http://www.petfoodindustry-digital.com/201306
http://www.petfoodindustry-digital.com/201305
http://www.petfoodindustry-digital.com/201304
http://www.petfoodindustry-digital.com/201303
http://www.petfoodindustry-digital.com/201302
http://www.petfoodindustry-digital.com/201301
http://www.nxtbookMEDIA.com