Pet Industry M&A Update

RESOURCE HIGHLIGHTS

• The ProShares Pawz Pet Care ETF increased by 8.7% and outperformed by the S&P 500, which increased 4.1% over the same period.
• The median EV/EBITDA multiple for reported PE deals declined in 1H 2024 to 17.9x from 23.3x in 2023, and for strategic deals declined to 11.9x in 1H 2024 from 36.6x in 2023.
• M&A deal volume decreased 37.0% in Q2 to 85 deals from 135 in Q1, and decreased 27.4% from 117 deals in Q2 of the prior year.
• As a % of total capital invested in M&A transactions in 2024, PE participation decreased in 1H 2024 to 62.7% from 55.1% in 2023.
• North America was the most active region in Q2 with 40 deals. Most notably in the North American market was Oil Dri Corporation Of America’s $46.0 million acquisition of Ultra Pet Company, a South Carolina-based supplier of silica gel-based crystal cat litter products, in May 2024.