Archer Growth invests in Best Friends Pet Supercentre

It is the first investment from Archer Growth's second fund, which recently closed at A$300 million. The size of the deal wasn't disclosed but the private equity firm has a reasonably strict investment thesis, targeting privately-owned businesses with an enterprise value of A$20-150 million that need growth capital or assistance with succession planning.

The partnership structure of the investment means that Best Friends' founders, Bob Baily and Andrew Muir, will continue to have a financial and operational interest in the business. Baily and Muir will remain CEO and non-executive director, respectively.

"It's really a buy-and-build opportunity for us and a chance to provide growth capital to proven management who are staying invested," Tim Spencer, managing partner of Archer Growth, told The Wall Street Journal.

Spencer added that the pet care industry has been resilient in the face of a deteriorating domestic retail market.

Australian pet food producer VIP Petfoods attracted interest from prospective private equity buyers at the end of last year. Both Pacific Equity Partners and CHAMP Private Equity were interested in the asset, with the latter reportedly entering into exclusive negotiations with the company.

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• Topics
• Consumer
• Australasia
• Expansion
• Archer Capital
• Consumer
• Australia
• Growth capital