Rutland exits Armitage in £140m deal

The exit from Rutland Fund III realised a return of 5.7x the original cost of the investment. 

Rutland acquired Armitage in September 2017 via Rutland Fund III, which closed on £263m in January 2015. The fund typically invests equity tickets of £10-50m in UK-based companies with EV ranging from £20m to £150m.

Under Rutland's ownership, Armitage increased its production capabilities and boosted its growth. This result was achieved with a new strategy, which included a warehouse move to an outsourced solution, a new ERP IT system and a total overhaul of the supply chain function. The transformation also included the recruitment of a new CEO, Mark Andrews, and several other senior hires in key roles.

Investment was also directed towards product development and the launch of a new range of premium cat treats under the Meowee! brand. Since Rutland's acquisition, annual sales grew from £45m to £65m in 2019.

Following the deal, Armitage will join forces with SPB's European Pet Buinesses, which includes SmartBone and Iams. The company intends to leverage the resources available within the wider SPB group in pursuit of continued growth. 

Company
Founded in 1775 and headquartered in Colwick, near Nottingham, Armitage is a manufacturer and distributor of branded pet treats, toys and accessories. It supplies supermarkets and pet specialist retailers with products for dogs, cats, small domestic pets, birds and fish.

The company markets its products under the Good Boy brand, which specialises in dog treats, and the recently launched Meowee! brand, which is dedicated to cat treats.

Armitage generates annual revenues in excess of £65m, according to a statement.

It reported revenues of £55m, gross profit of £17.4m and operating profit of £6.6m in the year ending on 2 June 2019, according to public documents.

People
Rutland Partners – Ben Slatter (partner).
Armitage Pet Care – Mark Andrews (CEO).

Advisers
Vendor – PwC (corporate finance, financial due diligence); Taylor Wessing (legal); OC&C (commercial due diligence); Jamieson (management due diligence).

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