FFP invests c. $25m in JAB Holding’s new pet care platform, composed of Compassion First and NVA, its first two acquisitions respectively announced in February and June 2019:
The investment is part of a $100m commitment alongside JAB Holding to support its new developments, primarily in the pet care sector.
The pet care sector demonstrates solid growth driven by increasing pet ownership and higher spend per pet. It has also proven resilient through economic cycles, and still offers significant consolidation and premiumisation potential. Veterinarians are a key referral during the whole pet life, and offer interesting synergies potential within the broader pet care space.
As a reminder, JAB is a privately held group focused on long term investments in premium branded consumer goods companies. JAB’s strategy consists in selecting and investing in leaders of the consumer goods sector with attractive long-term growth prospects and strong cash flow, while empowering first-class management teams to deliver value creation over a long holding period. JAB Holding is overseen by two managing partners, Peter Harf and Olivier Goudet, together with 8 other partners.
Robert Peugeot, Chairman and CEO of FFP, made the following comments: "This new step in our fruitful partnership with JAB Holding allows FFP to continue diversifying its assets in the pet care sector, which we believe shows attractive characteristics of long-term growth, resilience and consolidation potential. Compassion First and NVA are high quality assets, led by two strong CEOs, and a strategic entry point for JAB’s new vertical. This is a sector in which the JAB team has deep knowledge and expertise, hence a great partner to pursue the consolidation in the US and globally.”