MPM
- Sector Consumer & Private Label
- Year invested 2020
- Location UK
- Status Realised
MPM is an international leader in branded, premium, natural pet food. The business owns leading pet food brands such as Applaws, Reveal and Encore and differentiates itself through its high-quality, human-grade products, its natural, clean-label ingredients and its “cat first” proposition.
Overview
Headquartered in Manchester, UK, MPM has an established presence in the UK, EMEA and APAC with a fast-growing business in North America resulting in international sales now accounting for c.80% of revenues.
The market has proven resilient through economic cycles and Covid-19, with pet ownership increasing amongst a highly-engaged and loyal community for whom pets are seen as family members. The premium wet cat food market is large and is forecast to continue to grow, with MPM well positioned as the segment has historically been underserved by incumbent producers that are primarily “dog focused”.
How we added value
From a scaling mid-market pet food player to a global market-leading premium natural cat food business, under our ownership MPM more than doubled its revenue and nearly tripled organic EBITDA and it is well-positioned for continued growth.
- Achieved significant expansion in the US: strong growth in Chewy, Amazon, Petsmart and pet grocery specialists; US now accounts for >40% of revenues
- Broadened its omnichannel and online footprint. Chewy has gone from zero to largest customer by year end
- Significant investment in people; building the US team (including hiring US CEO) and strengthening marketing (appointed new global CMO)
- Invested behind brand, including the rebrand of Applaws and new product innovation, including the recent launch of Complete, a nutrient-enriched range
- Supported the business to achieve B Corp Status in 2021
- Explored manufacturing opportunities to reduce food miles through new suppliers
- Built digital into business processes
- Continued improvements to reporting and governance
- c.£400m total proceeds to 3i on exit which represents 3.2x MM, and an IRR of 29%
Read more about MPM's Good to Great journey here.
3i has been an outstanding partner. Their support in expanding our international footprint, investing in innovation and elevating our brand has been instrumental in MPM’s success. We are proud of the global platform we have built together and are excited for the next chapter.
Track record
Scaling premium pet food
CEO Julian Bambridge and 3i’s Rupert Howard discuss growing MPM from a mid-market pet food player to a premium, global cat food business over four and a half years, doubling sales and tripling EBITDA.
Regulatory information
This transaction involved a recommendation of 3i Investments plc, advised by 3i Investments plc.