Pet Industry M&A Update

RESOURCE HIGHLIGHTS

• In Q4, the ProShares Pawz Pet Care ETF decreased by 2.1% and was outperformed by the S&P, which increased by 2.0% over the same period.
• The median EV/EBITDA multiple in the Pet sector for reported private equity deals decreased to 9.9x in 2025 from 16.8x in 2024, and decreased for strategic deals to 8.1x from 13.0x in the prior year.
• M&A deal volume in the sector decreased 22.9% in Q4 to 74 deals from 96 in Q3 2025, and decreased 1.3% from 75 deals in Q4 of the prior year.
• Europe was the most active region in Q4 with 26 deals. Most notably in Europe was Inspired Pet Nutrition’s acquisition of Ultra Premium Direct, a French manufacturer of pet food products, for an undisclosed amount.
• Similar to deal volume, total capital invested in M&A transactions decreased 11.1% in Q4 to $0.8B from $0.9B in Q3. The mix of deal size stayed relatively flat from Q3 to Q4.