Quadrant returns to Australia's pet services space

The investment comes from the GP’s A$400 million ($310 million) growth fund, which writes checks of A$30-50 million for minority and control positions. Several other portfolio companies own consumer brands. The deal values Prime100 at A$150-200 million, the Australian Financial Review (AFR) reported.

Founded in 2014, the company produces pet food out of a plant in Melbourne. It specializes in single-protein diets (SPD) aimed dogs with food sensitivities because they eliminate potential allergens by reducing the number of ingredients. Prime100 offers SPD rolls made of novel proteins like kangaroo, turkey, lamb, duck, salmon, crocodile, and wild boar – chosen for their limited antigen properties.

It also produces dog food under the Raw brand, comprising fresh meat and organs, uncooked bones, and fruits and vegetables, and for ZeroG diets designed to prevent conditions like diabetes and digestion, skin, and dental issues. The latter was developed with Murdoch University in Western Australia. Prime100’s other collaborators include Melbourne Veterinary Specialist Center and Western Australia Veterinary Emergency & Speciality.

Founders Michael Pond, Tzena Naarden, and Ray Rivett will retain a minority stake in the business. Pond told the AFR that Quadrant’s involvement would accelerate the company’s growth plans, which include expanding into international markets.

“Quadrant actually came knocking on our door earlier this year as they wanted to get back into pet food and we couldn’t be happier with how it has gone,” he said. “They’ve already had success with two pet food businesses and know exactly the levers to pull and the team to bring in to ramp up growth.”

The private equity firm previously invested in City Farmers, a pet services business that operates retail stores and veterinary clinics, and Real Pet Food, a producer of chilled pet food with an international footprint. City Farmers was sold to veterinary services provider Greencross for A$205 million in 2014, while Real Pet Food was acquired by Hosen Capital, New Hope Group, and Temasek Holdings for A$1 billion in 2017.

The Prime100 investment coincides with KKR’s purchase of Natural Pet Food Group, a New Zealand premium pet food manufacturer. That deal facilitated an exit for local private equity firm Pioneer Capital.

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• Topics
• Australasia
• Buyouts
• Consumer
• Australia
• Quadrant Private Equity