International private equity firm, Cinven, has signed an agreement to acquire a majority stake in Arcaplanet, a pet care retail chain in Italy, from funds advised by Permira and Winch Capital Partners.
As part of the transaction, Cinven and Arcaplanet will jointly acquire Maxi Zoo Italia, the third largest pet care operator in the Italian market, and a subsidiary of Fressnapf Group. The combination of Arcaplanet and Maxi Zoo Italia (together ‘the Arcaplanet Group’) creates one of the leading pet care platforms in Italy, selling food and non-food products in c500 stores across Italy and online.
Headquartered in Italy, Arcaplanet was founded in 1995 by CEO, Michele Foppiani. Its first store opened in Chiavari, Liguria in 1998 and Arcaplanet is now present in 17 regions across Italy.
Headquartered in Germany, Fressnapf Group is a leading pet care provider in Europe, operating under the Maxi Zoo brand in more than 11 countries, including Italy.
Cinven will work in close strategic partnership with minority partner, Fressnapf Group, to capitalise on the growth opportunity at the Arcaplanet Group alongside management.
Building on Cinven’s significant expertise in the pet care market through its investment in Partner in Pet Food, a leading European pet food platform and market consolidator, Cinven’s Consumer sector team worked closely with its Italian and German teams to create this unique transaction. Together, the Cinven teams originated and cultivated two attractive and complementary investment opportunities in Arcaplanet and Maxi Zoo Italia, culminating in the proprietary combination to form the Arcaplanet Group.
Maxim Crewe, Partner and Head of Consumer at Cinven, says: “The combination of Arcaplanet and Maxi Zoo Italia creates a fantastic platform from which to drive growth in the pet care market and we look forward to working with management and Fressnapf to accelerate this opportunity. Cinven’s Consumer team has deep understanding of the pet care sector given Cinven’s investment in Partner in Pet Food, and the mega trends fuelling sector growth such as pet humanisation and product premiumisation and specialisation. In addition, Cinven has considerable experience in omnichannel retailing and accelerating digital strategies, and we look forward to supporting the Arcaplanet Group’s expansion in these areas.”
Eugenio Preve, Partner and Head of Italy at Cinven, adds: “Arcaplanet is a clear market leader in Italy, best positioned to capitalise on the omnichannel market opportunity going forward. This investment fits with Cinven’s focus of investing in Italian champions to support their growth both domestically and internationally. In particular, the Cinven team has been impressed with the entrepreneurial vision of Arcaplanet’s Founder and CEO, Michele Foppiani, and the business’s considerable achievements under his leadership.”
Cinven’s investment in the Arcaplanet Group builds on its current investment in Partner in Pet Food, a market-leading pet food manufacturer, headquartered in Hungary. In Italy, Cinven’s track record includes Avio, a designer and manufacturer of aerospace components, and Eurovita, a life insurance provider.
The transaction is subject to customary regulatory approvals.
Advisors to Cinven on the transaction included: Bain and Alvarez & Marsal (commercial); PwC (financial & carve-out); Barclays and Deutsche Bank (M&A); Deloitte (tax & structuring); onefourzero and Andrea Trocino (digital & tech); Freshfields (legal & antitrust); ERM (EHS) and Marsh (insurance). Advisers to the Arcaplanet management were LCA Studio Legale.