Pet Industry M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the ProShares Pawz Pet Care ETF increased by 12.0% and outperformed the S&P 500, which increased by 5.3% over the same period.
• The median EV/EBITDA multiple for reported private equity deals decreased to 17.9x in the first nine months of 2024 from 23.3x in 2023, and decreased for strategic deals to 11.9x from 36.6x in the prior year.
• M&A deal volume in the Pet sector decreased 3.5% in Q3 to 82 deals from 85 deals in Q2, but increased 82.2% from 45 deals in Q3 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased significantly in YTD Q3 to 88.8% from 71.3% in 2023.
• North America was the most active region in Q3 with 38 deals. Most notably in North America was Dechra Pharmaceuticals’ $520.0 million acquisition of Invetx, a Massachusetts-based producer of protein-based therapeutics for animal health, in July 2024.