L Catterton enters Japan's veterinary services space

The private equity firm has acquired a majority stake in the business, according to a source close to the situation.

L Catterton's previous pet-related investments in the region over the past two years have focused on pet food – China-based Shanghai Enova Pet Products and Partner Pet and, most recently, India’s Drools Pet Food. The humanisation of pets and the premiumisation of consumption in emerging markets were driving themes.

Withmal represents an opportunity in a more mature market, but one with scope for expansion and industry standardisation. Most of Japan’s 13,000 pet clinics are small businesses owned by vets in their 50s or older with no succession plans, according to a statement. Withmal wants to assume control of these businesses and consolidate the operational and administrative functions.

While pet food is the dominant category in pet care for private equity investors across the region, sentiment on pet services is strong. There is already evidence of consolidation in the US and several investors have identified similar nascent themes in Japan and South Korea. Veterinary services and pet beauty and grooming are the most frequently cited areas.

Founded in 2018, Withmal already claims to be one of the largest players in Japan with more than 20 clinics nationwide. Tomoki Yamasaki, the company’s founder and CEO, said that his goal is to build “a highly trusted veterinary services group that pet parents across the country can rely on for their pets’ healthcare needs.”

“Like many other small- and medium-sized businesses in Japan, a large number of pet clinics in the country have founders who are planning to retire over the next decade with no one succeeding them,” said Taka Shimizu, an Asia-based partner at L Catterton.

“By joining Withmal, however, they can extend the longevity of their practices and not only continue to serve their customers, but also do so with greater devotion and resources.”

Pet products and services is a core investment area for L Catterton globally. In pet food alone, the consumer-focused private equity firm has made over a dozen investments in North America and Europe over the past 20 years.

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• Topics
• North Asia
• Buyouts
• Consumer
• Japan
• L Catterton