Advent International Wednesday said it has bought Budapest-based Provimi Pet Food from Permira for EUR188 million with plans to back the company's growth across Europe.
Provimi Pet Food (PPF) is the third largest producer of private label wet and dry pet food in Europe, supplying approximately 280 customers, including major grocery retailers, in the 27 markets in which it operates. The company, which operates out of eight production sites in Europe, reported total sales of €236 million for 2010.
The company is part of the Provimi Group which will now focus on its key animal nutrition business which has already been substantially expanded through acquisitions in Colombia and Mexico and organic growth in Brazil, Russia and Asia.
"Advent's investment in PPF is undoubtedly the start of an exciting new phase in the development of our company," said Attila Balogh, chief executive, Provimi Pet Food.
"The international experience that Advent has in the retail and consumer sectors as well as its established presence in our core markets in Central and Eastern Europe will be extremely valuable as we grow our business to better meet the needs of our customer base," he added.
Advent International has been investing in the retail and consumer sector since 1984 and is a veteran of Central and Eastern Europe where it has invested since 1994. Recent investments by the private equity firm include Bulgarian mineral water bottler and distributor of soft drinks Devin, and Uno, a Turkish producer of bakery products.
Credit-Suisse (CS) ran the auction process and proceeds from the sale of PPF will be used to reduce Provimi Group's net debt position.