News Could Private Equity Investors Target Pet Retailer

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Could private equity investors target pet retailer?
23rd November 2021

By Justine Thompson

Speculation surrounding a private equity acquisition of Pets at Home remains high, according to a global research company.



Ross Hindle, an analyst at Third Bridge, said: “Some commentators have suggested an acquisition of Pets at Home will mean the business being broken up, but given how the company derives much of its competitive advantage from its integration we're hearing this would be costly and value-destructive.
 
“Pets at Home was a clear beneficiary of the UK's desire for pet companionship through the pandamic, with outgoing CEO, Peter Pritchard, steering the company to enormous success.
 
“Pets at Home VIP Club members continue to show promising growth, with active subscribers increasing to 6.8m and showing no sign of slowing down. Our experts believe the benefits of such memberships have not been fully valued or appreciated by the market.

“The data-rich insights derived from these membership clubs allow the group to target spend, promote premiumisation, and capture more of the lifetime value of pet ownership. Thanks to the way we're treating pets more like humans our experts estimate we currently spend around £12k on our four-legged friends over their lifetime.
 
“Our experts say that Pets at Home has brought together an effective omnichannel strategy, on-site veterinary practices, and a premium product range to capture a pet product sales boom.”
 
Third Bridge is a global primary research firm that interviews more than 6,000 internationally recognised industry experts and business leaders a year to compile 360-degree market intelligence for institutional investors.