(Bloomberg) — Swedish private equity firm EQT AB offered to acquire German online pet-food retailer Zooplus AG for 470 euros a share, topping an offer by Hellman & Friedman.
Zooplus welcomed the offer, giving EQT the upper hand in the takeover fight with H&F. EQT’s proposal, made through a holding company called Pet Bidco GmbH, valued Zooplus at 3.36 billion euros ($3.94 billion) and was 10 euros-a-share higher than H&F’s last bid. The EQT offer was also 0.9% higher than Friday’s closing price.
EQT and Zooplus have signed an agreement in which the private equity company committed to supporting considerable growth investments. The deal needs the approval of more than 50% of Zooplus shareholders, and is subject to other regulatory considerations.
Earlier this month H&F boosted its bid for the pet food retailer by 18% to 460 euros a share after Zooplus confirmed it was in talks with buyout firms KKR & Co. and EQT about counteroffers to its initial bid. KKR then ended talks over a possible bid for Zooplus, but EQT stayed in the hunt.
Private equity firms are sitting on record amounts of unused capital, spurring the most buyout-led acquisitions in Europe in the first half of the year in over a decade. The pet-care market has surged in the last two years as stay-at-home workers adopt furry friends, according to figures from Euromonitor.
Euromonitor predicts 7% growth in the global pet-care market through 2026 as online transactions boost sales. The industry was already benefiting as dog and cat owners looked for more premium products and the convenience of online deliveries.
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