Private equity firm ‘hungry to cash in on pet food company investment’
A private equity group is looking to double its money on its investment in a Cheshire pet food business.
According to reports over the weekend, ECI Partners has appointed advisers to find a buyer for MPM, and is seeking in the region of £100m.
This is double the price ECI paid for a majority stake in the Macclesfield business in March 2016.
Rival bidders for the business included Belgium-based venture capital firm Verlinvest and Mayfair Equity Partners.
Mark Keeley, partner at ECI in Manchester, said at the time: “Pet owners are increasingly concerned about the health and well-being of their cats and dogs and are looking for wholesome, natural, high-quality products. That’s why we believe MPM is very well placed for further growth.”
MPM was set up by Roger Wood, Roger Coleman and Jon Kinsey in 2002 – they continued to hold a minority stake in the business after the buyout.
The business targets ‘discerning’ cat and dog owners. The founders were inspired by not wanting to feed their own pets additive-filled meats. MPM’s portfolio of products includes Applaws, Encore, Reveal, and Nature’s Calling.
MPM has enjoyed success in the US and Asia, recently, and the latest accounts show a 19% increase in revenues in 2017 to £53m. Profits were around £4m.
ECI, which has a Manchester office, is reported to have appointed bankers from Harris Williams to achieve a sale by next year.
Jonathan Buxton, a partner at mergers and acquisitions specialist Cavendish Corporate Finance, said private equity giants have a “close interest” in the pet sector.
He added: “Pet care spend is experiencing unprecedented growth – especially in Europe which has 200 million pets.”
ECI and Harris Williams have declined to comment.
ECI has a track record of investing in North West companies including the exit of Wilmslow-based Citation and a previous investment in Knowsley-based Clarke Energy, which has since been sold to US owners.
Previous notable investments in the region also include NCC Group plc, Bargain Booze (now listed as Conviviality Plc), Laterooms.com, Think Money Group and Ascribe.
