Hellman & Friedman Offers $3.3 Billion for Germany’s Zooplus

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Aug 13 2021, 1:05 PMAug 13 2021, 2:42 PMAugust 13 2021, 1:05 PMAugust 13 2021, 2:42 PM

(Bloomberg) -- Hellman & Friedman offered to buy Zooplus AG, a German online retailer of pet supplies, for about 2.8 billion euros ($3.3 billion) as the private-equity firm tries to snap up a company that has been among the big lockdown winners.

The bid of 390 euros per share in cash, which is backed by Zooplus’s management and supervisory boards, implies a 40% premium over the company’s Aug. 12 closing price.

Zooplus shares doubled in value last year and have done so again in 2021. They surged as much as 43% in German trading on Friday.

The pet-care market was already booming before Covid-19 as owners increasingly bought more premium products and turned to convenient online deliveries. Then as the pandemic took hold, people stuck at home sought out furry companions, pushing adoptions and fostering to record highs. Though a return to normality could slow the trend, the increase in flexible work arrangements post-Covid may mean people continue to buy pets.

The market has been thriving globally. Nestle SA, which owns the Purina brand, saw pet food sales surge at the fastest rate in more than a decade last year. The company has a majority stake in the U.K.’s Tails.com, a direct-to-consumer, tailor-made dog nutrition business, a move made in 2018 to partake in the fast growth seen in personalized pet nutrition and subscription services. Pets at Home Group Plc said last month it expects full-year earnings to be at the top end of analyst expectations. And JAB is said to be weighing an initial public offering of its pet-care portfolio.

“With Hellman & Friedman as a strategic and financial partner, Zooplus gains additional sector expertise, hands-on support, enhanced financial flexibility and a stable ownership structure to fully seize the long-term growth opportunity” in the industry, the company said in a statement Friday.

The offer will be subject to conditions including reaching a minimum acceptance threshold of 50% plus one share, according to a statement from Hellman & Friedman vehicle Zorro Bidco.