UK-based private equity firm 3i Group has halted the sale process for premium pet food manufacturer MPM, as it evaluates the impact of newly imposed US tariffs, according to a report from Bloomberg News, citing sources familiar with the matter.
MPM, whose portfolio includes pet food brands such as Applaws, Reveal, and Encore, sources a significant portion of its raw materials from Thailand. The decision to pause the transaction follows the US government’s recent imposition of a 36% tariff on Thai imports — one of the highest levies introduced under President Donald Trump’s latest trade policy agenda.
The tariffs, part of a wider escalation in global trade tensions, have introduced a new layer of uncertainty for cross-border deals and supply chains, particularly for companies with strong ties to Asian markets.
According to Bloomberg, the proposed sale of MPM could have valued the business at around £500m ($635m). However, 3i is now reassessing the timing of a potential exit and may look to revive the process once market conditions stabilise.
3i initially invested in MPM in 2020, and the business has grown steadily amid rising consumer demand for natural and ethically sourced pet food. The firm is said to remain supportive of MPM’s long-term growth trajectory, despite current headwinds.
