Pet Industry Deal Activity – Q4 2010
The Pet Industry finished 2010 with a flurry of M&A activity involving financial and strategic industry insiders looking to grow through acquisition. The quarter-over-quarter increase in deal activity was driven primarily by strategic acquisitions in which acquirers bid on pet product companies that would expand existing product lines. Unique product and service offerings (i.e. Xena Care’s acquisition of EstraPet) continued to dominate strategic activity and multiples paid.
As we saw in Q3 2010, high-performing companies were able to command price premiums while weak-performing companies needed unique deal aspects to consummate financial and capital transactions.