2H 2021 Deal Hound – Pet M&A Report

The pet care and service market has been on a tear in the past decade with growth poised to extend thanks in part to population shifts to urban areas, a Millennial generation that can’t get enough of their furry friends, increased disposable income, a growing number of single-person households, and a pandemic pet-ownership boom. Some 23 million American households, nearly 1 in 5, adopted a pet since the start of the COVID-19 pandemic. Nearly 85 million U.S. households include a pet (while less than 34 million households include children). All those pets need care and feeding and, apparently, a lot more. Building on the “humanization of pets” trend, all kinds of human-focused products and services are morphing into pet services. Think wearable fitness and health trackers for pets, specialty pet foods, pet health insurance, and pet video calls (yes, this is real). As workers return to the office after months at home with their pets, we expect increased demand for pet daycare or other services. A Wisconsin-based dog daycare franchise, Central Bark, in December announced an investment from NewSpring Capital expected to propel growth from 35 locations nationwide to 350 in five years.7 The gig-based platform Rover, offering overnight pet boarding and dog-sitting, reported a best-ever $157 million in revenue for the quarter ending Sept. 30…