FFP invests c. $25 million in pet care alongside JAB Holding
FFP invests c. $25m in JAB Holding's new pet care platform, composed of
Compassion First and NVA, its first two acquisitions respectively announced in
February and June 2019:
* Compassion-First operates a network of over 40 pet specialty hospitals and
treatment facilities in the United States. Founded in 2014 by its current CEO
John Payne, the company provides specialty, emergency and general veterinary
care supported by multidisciplinary collaboration among its veterinarians
inspired by the model of the "Mayo clinic".
* National Veterinary Association (NVA) is one of the largest veterinary and
pet care services organizations in the world. Under the leadership of its CEO
Greg Hartmann, NVA has built a network of over 800 general practice
hospitals, specialty & ER hospitals, equine hospitals, and pet resorts in
the United States, Canada, Australia, and New Zealand. NVA's over 14,000
team members and over 3,000 veterinarians provide a full range of medical
and surgical services.
This investment is part of a $100m commitment alongside JAB Holding to support
its new developments, primarily in the pet care sector.
The pet care sector demonstrates solid growth driven by increasing pet
ownership and higher spend per pet. It has also proven resilient through
economic cycles, and still offers significant consolidation and premiumisation
potential. Veterinarians are a key referral during the whole pet life, and
offer interesting synergies potential within the broader pet care space.
As a reminder, JAB is a privately held group focused on long term investments
in premium branded consumer goods companies. JAB's strategy consists in
selecting and investing in leaders of the consumer goods sector with attractive
long-term growth prospects and strong cash flow, while empowering first-class
management teams to deliver value creation over a long holding period. JAB
Holding is overseen by two managing partners, Peter Harf and Olivier Goudet,
together with 8 other partners.
Robert Peugeot, Chairman and CEO of FFP, made the following comments: "This new
step in our fruitful partnership with JAB Holding allows FFP to continue
diversifying its assets in the pet care sector, which we believe shows
attractive characteristics of long-term growth, resilience and consolidation
potential. Compassion First and NVA are high quality assets, led by two strong
CEOs, and a strategic entry point for JAB's new vertical. This is a sector in
which the JAB team has deep knowledge and expertise, hence a great partner to
pursue the consolidation in the US and globally."
FFP is an investment company listed on Euronext, majority-owned by
Établissements Peugeot Freres and led by Robert Peugeot. FFP is one of the
leading shareholders in Peugeot SA and pursues a policy of investing for the
long term by taking minority stakes. FFP holds interests in listed companies
(such as SEB, Safran, Orpea, Lisi and Spie), unlisted companies (such as
Tikehau Capital Advisors, Acteon or Total-Eren), co-investments (such as IHS
and JAB Holding), private equity funds and real estate (such as SIGNA Prime
Selection or Immobilière Dassault).