Australia’s Real Petfood Company might be up for sale at a whopping A$2 billion (US$1.38 billion).
Several of its stakeholders are keen to exit the business especially currently when Pet Food is one of the most lucrative business since the pandemic outbreak. This is due to growing pet adoption during the extended lockdown period, and even after the lockdown, people tend to spend more time at home.
Real Petfood is the 2nd largest pet food manufacturer in Australia with more than 15% share behind Mars Wrigley, and also ranks among the Top 20 largest pet food companies in the world.
It operates a manufacturing plant in Inverell, NSW which has a production capacity of up to 50,000 tonnes of dry pet food.
According to IBISWorld, the pet-food industry in Australia generates A$2.9 billion (US$2 billion) in revenue annually and A$280.9 million (US$194 million) in profit, with 5% growth annually. Dog food accounts for 49.2% of sales and cat food 39%.
Pet Food companies have become targets for acquisitions lately due to soaring revenue performance. For example, New Zealand-based natural pet food provider, ZiwiPeak was sold to Chinese fund, FountainVest for about NZ$1.5 billion (US$930 million). Meanwhile, Australian pet food retailer, PETstock is also now a target for acquisition.
