Pet Industry M&A Update
- The ProShares Pawz Pet Care ETF increased 1.2% in Q2 but underperformed the S&P 500 index, which increased 6.1% in the same period.
- The median EV/EBITDA multiple for reported private equity deals increased to 23.3x in 1H from 15.4x in 2022.
- M&A deal volume in the Pet sector decreased 3.3% in Q2 to 117 deals from 121 in Q1 and 45.6% from 215 deals in Q2 of the prior year.
- As a % of total capital invested in M&A transactions in 1H, PE participation decreased significantly to 18.6%, down from 53.9% in 2022.
- North America was the most active region in Q2 with 55 deals. Most notable in North America was Post Holdings’ $1.2 billion acquisition of J.M. Smucker Co’s Pet Food Business in April 2023