Pet Industry M&A Update
- The ProShares Pawz Pet Care ETF decreased 11.6% in Q3 and was outperformed by the S&P 500 index, which decreased 3.8% over the same period.
- The median EV/EBITDA multiple for reported PE deals was 23.3x in YTD 2023, up from 15.4x in 2022, and increased for strategic deals to 36.6x in YTD 2023 from 14.5x in 2022.
- M&A deal volume in the Pet sector decreased 61.5% in Q3 to 45 deals from 117 in Q2 and 78.0% from 205 deals in Q3 of the prior year.
- Total capital invested decreased 90.0% to $0.4 billion in Q3 from $4.0 billion in Q2 and 94.0% from $6.7 billion in Q3 of the prior year.
- Europe was the most active region in Q3 with 25 closed transactions. Most notable in the European market was DSM Firmenich’s $298.6 million acquisition of Adare Biome in July 2023.