VIP Petfoods, which calls itself the world’s largest producer of fresh chilled pet food, is believed to be of interest to private equity, as its founder flags a push into confectionary.
According to the Australian Financial Review, a price tag of $450 million is being sought, given earnings before interest, tax, depreciation and amortisation of $50 million on revenue of $300 million.
The privately held business was founded by Tony Quinn 10 years ago, and exports to North America and Asia.
It has an export factory in Queensland, and three others across Australia, with a reported 600 employees.
Earlier this month, Quinn said he was exhausted and flagged a step away from VIP Petfoods and into confectionary.
“It’s important for the business to continue on its march that I step outside,” Quinn told the Gold Coast Business News.
“I would have never believed it 10 years ago, but you get exhausted.”
“I’m looking at pursuing opportunities in the confectionary world and going up against Nestle and Mars.”
The company’s products include cooked meals such as an “innovative range of lamb and chicken chunkers” and “chub form dog rolls” and vacuum-packed fresh minces. The company has also introduced premium wet and dry pet food for dogs and cats, and fresh pet treats.
Quinn, a racing aficionado, was contacted for comment this morning, but did not respond before publication. Potential buyers Kohlberg Kravis Roberts and Affinity Equity Partners were also contacted.
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