Press release: Platinum Equity
Platinum Equity recently announced the acquisition of Petmate, a leading maker of pet products sold through a wide range of retail partners. Financial terms were not disclosed.
Headquartered in Arlington, Texas, Petmate was founded in 1959 as Doskocil Manufacturing with a singular focus on providing safe pet transportation, resulting in the development of the industry’s first dog kennel. Today the company manufactures, sources and markets a diverse product line that includes plastic and wire pet kennels, dog houses, toys, food storage, bedding, treats and chews and other pet-related products and accessories.
“Petmate has been a leading innovator in pet products for more than 60 years and has an outstanding portfolio of respected brands,” said Platinum Equity managing director Adam Cooper. “The U.S. pet market has grown steadily for the past 20 years and the secular trends driving it are expected to continue. The company’s vertically integrated manufacturing capabilities and domestic footprint help ensure an efficient and reliable supply chain, which is more important than ever in today’s environment.”
Petmate’s products are sold through big box pet retailers, mass merchandisers, major e-commerce retailers, farm and ag stores, and specialty pet stores. The company’s current brand portfolio includes Chuckit!, Pet Qwerks, Healthy Chews, Gamma2, JW and La-Z-Boy.
Petmate CEO Alice Tillett will continue leading the company following the change in ownership.
“We are so excited to join Platinum’s portfolio of industry leading companies,” said Alice Tillett, CEO of Petmate. “The pet industry in general and Petmate specifically are extremely well positioned for success. With the support of Platinum Equity and a strong core team at Petmate, we are confident and energized to enter our next phase of growth.”
In addition to opportunities for organic growth, Platinum Equity expects to use its M&A resources to help the company expand.
“Petmate is a strong platform of scale operating in a highly fragmented industry,” added Cooper. “With our financial, operational and M&A resources, we will support the company in its pursuit of further growth through additional acquisitions. There are significant near-term opportunities to broaden Petmate’s capabilities, diversify its product portfolio and blue-chip customer base, and accelerate its expansion in the fast growing e-commerce channel.”
BMO Capital Markets served as financial advisor to Platinum Equity on the acquisition of Petmate, and Gibson, Dunn & Crutcher LLP and Alston & Bird served as legal advisors.
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.
Founded in 1959 as Doskocil Manufacturing, Inc., Petmate, headquartered in Arlington, Texas, is passionate about providing fun, trusted quality products worldwide to enhance the lives of pets and their families. The company’s vision, to be the worldwide leader of solutions and excellence in the pet industry, encapsulates its commitment to deliver award-winning, innovative ideas daily to each of its product categories including bedding, kennels, dog houses, feeding and watering products, litter maintenance products, toys, collars, leads, travel and more. Petmate’s portfolio of pet, family-favorite brands include Chuckit!, Pet Qwerks, Healthy Chews, Gamma2, JW and, La-Z-Boy.