A&M Capital Europe (AMCE), a London-based, operationally-focused European middle-market private equity firm, is to acquire Pet Network International (Pet Network) from US-based asset management group The Rohatyn Group (TRG).
Pet Network is an omni channel pet care platform in southeast Europe, operating across Croatia, Romania, Slovenia, Serbia and Bulgaria. The transaction, terms of which were not disclosed, is expected to close in the third quarter of 2021.
Pet Network was created by TRG in 2018 through the acquisition and merger of three distinct businesses active in the pet supplies industry across southeast Europe: 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. Today the Company operates more than 150 physical stores across five countries under the Pet Centar, Maxi Pet, Animax and Mr. Pet brands. The Company also operates various eCommerce channels as well as a growing offering of value-added services including veterinary pharmacies.
TRG Managing Directors Stepan Karpukhin and Harold Chatelus say: “Pet Network is a fast growing and highly successful business that has benefitted from the global trends around pet humanization, combined with high levels of pet ownership across southeast Europe. The Company’s talented management team, led by CEO Ljiljana Markov Medugorac, has played a vital role in capitalising on this positive momentum and will continue to run the business post the transaction closing.”
Colin Clark, Head of EMEA at TRG, adds: “In line with TRG’s buy-and-build philosophy, during our ownership period, Pet Network has delivered remarkable growth and transformed into a sizeable business on a European scale. We are confident that AMCE is the right partner for Pet Network’s next chapter and are pleased to have found a like-minded investor to further the Company’s growth story.”
Ljiljana Markov Medugorac, CEO of Pet Network International, says: “TRG’s acquisition three years ago was an important milestone that helped us achieve rapid growth, add-on acquisitions, many new store openings, online expansion, an expanded own brands portfolio and countless other initiatives. Navigating through a global pandemic over the past year, we also expanded our operations to a new exciting market, Bulgaria. We are all proud of Pet Network’s teams achievements, which were strongly backed up with TRG’s support and guidance. While we will be sad to say goodbye to our colleagues at TRG, we are also excited to start the next chapter in the company’s development in partnership with AMCE, who like TRG share our vision for the company’s future growth.”
TRG CEO Nick Rohatyn adds: “We are proud of our investment in Pet Network. This represents a landmark transaction for the European team as well as TRG globally. Given the strong growth drivers underpinning the pet space, TRG views this as a highly attractive sector. Our experience with Pet Network represents a great example of the innovative consumer focused businesses that can benefit from consolidation and pan-European scale that we like at TRG.”
TRG was advised on the transaction by William Blair (M&A), Deloitte (Financial & Tax), Baker McKenzie (Legal), Babic (Legal) and BCG (Commercial).
AMCE was advised by Houlihan Lokey and Alantra (M&A), Alvarez & Marsal (operations), Dickson Minto (Legal), EY (Financial & Tax), AT Kearney (Commercial).
