Mars Petcare Acquires BluePearl Veterinary Hospitals

Mars Petcare is in the process of adding BluePearl Veterinary Hospitals to their business line. Mars Petcare is the fastest growing division of the Mars brand/business. Details of the transaction have not been released but analysts believe Mars will acquire 53 specialty veterinary hospitals to add continuing care to Banfield Pet Hospital clients and others with companion animals. 

BluePearl CEO, Darryl Shaw said, “This agreement is a natural fit for us—Mars is an iconic, family-owned organization with a very significant commitment to pets. Once completed, this exciting development will enable us to make key investments in our people, facilities, systems and infrastructure, allowing us to continue to grow and drive up standards of veterinary care. We will continue to operate as a separate, distinct business unit maintaining our absolute commitment to serving the primary care veterinary communities where we operate hospitals because we know these relationships provide the necessary foundation for the best possible care for our patients. We will also continue our commitment to offer high-quality referral specialty and emergency care and, consistent with our historical model. We will not offer primary care services.”

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PetSmart's Acquisition of Petco Encounters Roadblocks

PetSmart and Petco were in discussion to merge the two companies with PetSmart acquiring Petco. Financial analysts had mixed opinions over what this acquisition would mean for the North American pet supply market. The two companies are still interested in joining however the deal has met some roadblocks; according to Reuters the companies are reportedly having disagreements over sharing the risk of having the deal approved by American antitrust authorities. All parties involved have asked for confidentiality, declined to comment, or did not respond to comment requests from Reuters.

Petco has declined a proposal that requires compensation to PetSmart should the Federal Trade Commission require many store closures. Petco has asked several private equity firms to submit their acquisition offers within several weeks. The owners hope to sell Petco for at least $5 billion USD, including debt.

   

Petco filed for an initial public offering in September 2015 and this avenue will be opened if the company is not sold.

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Is a Large American Pet Store Merger about to Happen?

A potential merger is on the table that will create a single company that holds 30% of the pet specialty stores in the United States. Petco Holdings Inc will potentially be acquired by PetSmart Inc. Over the past year, Petco had approximately $4 billion USD in sales and PetSmart had $7.1 billion USD in sales. IBISWorld estimates that PetSmart and Petco bring in more than half of America’s pet store revenue.

In 2014, PetSmart was working with Petco on a merger however PetSmart withdrew from the deal and was bought by BC Partners Ltd for $8.7 billion USD. At that time, revealing confidential information to a large competitor may not have received antitrust clearance.

Currently Petco is owned by TPG Capital LP and Leonard Green & Partners LP. Last month Petco was registered for an initial public offering that valued the company at approximately $5.5 billion USD including debt. While the company registered for an IPO, it is also potentially for sale and Petco officials have been involved in discussions with private equity firms.

Informal talks have taken place between PetSmart and Petco with the goal of increasing the price of Petco. PetSmart has yet to be given access to Petco’s confidential information. Currently, none of the parties involved are willing to publicly discuss any information pertaining to potential negotiations.

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Bosch Tiernahrung Purchases Harrison Pet Products Inc.

Bosch Tiernahrung, a German pet food company has purchased the Canadian company Harrison Pet Products Inc.. According to the deal, Harrison will remain a separate Canadian company. Harrison produces wet and dry dog and cat foods, small animal feed, and cat litter. Harrison products may be found in 35 countries under the brand names Genesis, Chicopee, and Titan.

Harrison’s current products will continue to be manufactured but new products will benefit from Bosch’s experience. The former Vice President of Harrison, Holly Morrell, will remain at the company with the new title of International Managing Director. Morrell will continue to work within Harrison’s current distribution network and will be using Bosch’s marketing strengths to benefit Harrison. Harrison will also receive help from Bosch for product expansion as Harrison joins the bakery/treat market.

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Nestlé Purina PetCare Agrees to Purchase Merrick

An agreement has been signed by Merrick Pet Care and Nestlé Purina PetCare regarding the sale of Merrick to Purina. Terms of the sale have not been published. The sale should close within months and will allow Merrick to benefit from Purina’s global resources.

Merrick produces natural and organic dog and cat food and treats. Merrick has no planned changes to management or operations due to the sale and will continue to produce high quality nutritious food. Merrick Founder, Garth Merrick said, “I believe Nestlé Purina is the right company to take what I, along with others, have built to the next level. I’m proud my name will continue to be on the door as we remain committed to making the best food for the best pets ever.”

CEO of Nestlé Purina PetCare, Joe Sivewright said, “The Merrick team has built an extremely strong portfolio of natural and organic pet food and treat brands that are helping millions of pets thrive. We admire Merrick and what the team is doing to provide pets with nutritious, quality and safe food and are excited about how the Merrick brands will broaden the Purina portfolios.”

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