Pet Industry M&A Update

RESOURCE HIGHLIGHTS

• The ProShares Pawz Pet Care ETF decreased by 8.1% and was outperformed by the S&P 500, which increased by 3.0% over the same period.
• The median EV/EBITDA multiple in the Pet sector for reported private equity deals decreased to 16.8x in 2024 from 23.3x in 2023, and for strategic deals decreased to 13.0x from 36.6x in the prior year.
• M&A deal volume in the sector decreased 8.5% in Q4 to 75 deals from 82 deals in Q3, and decreased 33.6% from 113 deals in Q4 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased meaningfully in 2024 to 61.3% from 55.1% in 2023.
• Europe was the most active region in Q4 with 33 deals. Most notably in Europe was Mpac Group’s $59.6 million acquisition of Csi palletising, a Netherlands-based provider of packing and palletising solutions for dry and wet pet food, in November 2024.