ECI announces sale of MPM delivering a 4.4x return

ECI Partners today announced that it has exchanged on the sale of Manchester-based MPM to 3i Group for a return of 4.4x, with completion subject to regulatory clearance.

MPM produces premium, natural pet food for discerning cat and dog owners under the Applaws, Encore and Reveal brands.

Its products are sold across 50 countries and the business has maintained its strong growth this year, proving to be highly resilient since the initial impact of COVID-19.

ECI first invested in MPM in March 2016, to help support its international growth and today more than 60% of MPM’s revenues are international, with strong growth in both the US and APAC markets during ECI’s involvement.

MPM prides itself on developing high-quality and innovative products, enriching the lives of pets and their owners through visibly better pet food. MPM brands are well positioned across pet specialty, grocery and online channels as demonstrated by its strong revenue growth which has seen consistent growth of more than 20% each year for the past five years.

The global pet food sector is worth more than £58bn and has grown every year since 2005, including during the global financial crisis of 2008-2009.

The long-term growth drivers supporting this include the rise in pet numbers, increasing interest in the premium segment as consumers spend more on their pets than ever before, and a growing focus on quality and sustainability.

Harris Williams and Squire Patton Boggs served as financial adviser and legal counsel, respectively, to MPM and ECI.

Julian Bambridge, chief executive of MPM, said: “It has been fantastic partnering with ECI over the last four years, to further strengthen our platform, internationalise our business and develop new product lines.

“We pride ourselves on our values of transparency, simplicity and responsibility, and look forward to bringing MPM’s high-quality, premium pet food to an even wider global audience during the next stage of our journey.”

Mark Keeley, partner at ECI Partners, said: “We’re delighted to announce the sale of MPM. Julian and the team have done an exceptional job, successfully growing the business internationally, with MPM’s focus on quality really resonating with consumers globally.

“We believe MPM is well placed to continue its impressive growth and would like to thank the team for a successful partnership as we wish them all the best for the future.”