Creador buys 40% stake in Malaysia's Pet World, COPE exits
Malaysia-based Creador has acquired a 40% stake in prominent local pet food maker and brand owner Pet World, setting up an exit for COPE Private Equity.
Financial terms were not disclosed. Creador closed its fifth fund earlier this year at the hard cap of USD 680m. It writes cheques of USD 40 to USD 60m.
COPE backed Pet World in 2021 and described its value-add work as enabling the company to establish a world-class manufacturing plant in Shah Alam to meet growing local demand for pet food. During the holding period, the pet care segment of the business grew about 27% a year on the back of continuous product innovation and an entrenched distribution network.
Founded in 2006, Pet World claims to be the largest local pet food brand in Malaysia with brands such as ProDiet, ProBalance, and Delizios. It offers a range of products in both standard and premium formulations for cats and dogs. The distribution network covers more than 20,000 points of sale nationwide.
The company’s monthly production capacity is 3,000 metric tons, and this is set to expand. Creador is also expected to be helpful in pursuing regional M&A opportunities to accelerate international expansion.
“Pet World’s management team has shown exceptional capabilities by winning in an industry dominated by large multinationals,” Brahmal Vasudevan, founder and CEO of Creador, said in a statement.
It marks Creador’s 50th investment since its inception in 2011 In addition to Malaysia, the firm maintains bases in India, Indonesia, and the Philippines. Assets under management (AUM) amounted to about USD 2.1bn as of the close of Fund V.
Founded in 2005 by asset manager Opus Capital and CMS Capital, the PE arm of Malaysian conglomerate Cahya Mata Sarawak, COPE focuses on domestic middle-market companies that generate most of their revenues offshore in foreign currencies. Its fourth fund closed at MYR 300m (USD 64m) in 2018, bringing AUM to more than MYR 500m.
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