Bangkok Post

Mars buys AniCura in petcare push

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LONDON: Mars Inc is to buy European animal hospital operator AniCura AB, its second such deal this month, as the world’s largest pet food maker expands its veterinary business amid a boom in petrelated spending.

Mars said yesterday that was buying the Swedish company from private investment firms Nordic Capital, Fidelio and other minority shareholde­rs. The deal is worth €1 billion to €2 billion ($1.18 billion to $2.36 billion), according to a source familiar with the matter.

Mars did not disclose the price. The acquisitio­n comes the week after Mars agreed to buy British veterinary services provider Linnaeus Group.

It is the latest in a string of petcare deals by Mars and others looking to capitalise on consumers’ increased spending on pets.

Globally, there have been 17 pet-related deals so far this year, according to Poul Weihrauch, president of Mars Petcare, as the trend takes hold around the world, in places including China.

“It’s very hot, if you will, at the moment,” Weihrauch told Reuters.

However he described a slow trend over the past several decades that has seen people gradually treat their pets more and more like members of the family, driving higher spending on their nutrition and welfare.

“What’s more, pet food and related products sell particular­ly well online and in cities,’’ he said, “meaning that the pet business is benefiting from big trends toward online shopping and urbanisati­on.’’

AniCura has 200 animal hospitals in Sweden, Norway, Denmark, Germany, Austria, Switzerlan­d and the Netherland­s and annual sales of about four billion Swedish krona ($459.5 million), according to Peter Dahlberg, its chief executive officer.

Together with Britain’s Linnaeus, Mars is working to build out its veterinary business, which is currently concentrat­ed in North America with brands including VCA, Banfield and BluePearl.

Other recent petcare acquisitio­ns include General Mills Inc’s February deal for pet food maker Blue Buffalo Co Ltd and Nestle SA last month taking a stake in Tails. com.

Mars, a privately held American food manufactur­er with brands i ncluding M&M’s and Twix chocolate, gets about half its annual sales from pet-related goods including Pedigree and Whiskas brands pet food.

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