June 1, 2015
Quadrant Private Equity has agreed to pay $410 million for a minimum 85% stake in the Queensland, Australia-based chilled pet food business, VIP Petfoods. Tony and Christina Quinn, who founded VIP in 1994, will maintain a minority stake in the company and will reinvest a portion of the proceeds from the deal back into the business.
The entire domestic pet industry is very emotionally charged, with families treating their pets as a member of the family, with the ‘humanization’ and ‘premiumization’ of pet care and feeding over recent years driving growth within the sector.
VIP distributes Fussy Cat and Nature’s Goodness brands in Australia, Canada, and Korea, and has begun distributing in the U.S. through H.E.B. grocery stores in Texas. The funding from this deal will support the company’s plans to expand its reach in the U.S. market toward the company’s goal of doubling its business.
“VIP has built up an impressive position in the Australian pet food industry and has established a truly leading manufacturing capability. We believe there are opportunities to further implement growth and strategic initiatives to enhance the brand and product in Australia and throughout the world,” says Chris Hadley, managing director of Quadrant.
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