A&M Capital Europe buys Pet Network for EUR 260m

Boris Maleshkov
22 July 2021

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London-based private equity house A&M Capital Europe has acquired Pet Network, a pet supplies retail group operating across south-east Europe, from The Rohatyn Group (TRG).

Pet Network was valued at around EUR 260m, according to two sources familiar with the situation.

The company, which had been owned by TRG since 2018, was sold for about 2x its EUR 136m consolidated revenue forecast for 2021, the sources said.

Sponsors A&M and Mid Europa Partners, as well as German pet food retailer Fressnapf Tiernahrungs, submitted binding bids for the Zagreb-based group, one of the sources said. Final bids were due on 7 July, this source added.

A&M and Alantra declined to comment, while TRG, William Blair, Houlihan Lokey, Mid Europa and Fressnapf did not return requests for comment.

Company
Pet Network was created by TRG in 2018 through the acquisition and merger of three businesses active in the pet supplies industry: Pet Centar, which operates in Croatia, Serbia and Romania; Animax, which operates in Romania; and Mr Pet, which operates in Slovenia.

The origins of the group date back to 1999 when the first Pet Centar store was opened in Croatia.

Pet Network now has roughly 1,500 employees and more than 140 shop locations, along with localised online shops. It operates 106 stores in Romania, 19 stores in Slovenia, nine stores in Croatia, eight in Serbia and two in Bulgaria.

Advisers
Equity – Houlihan Lokey (M&A); Alantra (M&A); Alvarez & Marsal (operational due diligence); Dickson Minto (legal); EY (financial due diligence, tax); AT Kearney (commercial due diligence).
Vendor – William Blair (M&A); Deloitte (financial due diligence, tax); Baker McKenzie (legal); Babic (legal); BCG (commercial due diligence).