A significant transition looms for Manchester-based pet food manufacturer, MPM. Private equity group 3i, the major stakeholder, is preparing to sell its stake.
Acquired four years ago, MPM’s strategic growth has caught significant attention. A sale, expected next year, could be one of 3i’s largest recent exits.
Founded in 2002, MPM revolutionised pet food by offering products made from 100% natural ingredients. This alternative approach is gaining traction among health-conscious pet owners globally.
The brand, which includes Applaws, Reveal, and Encore, is now trusted in 49 countries. MPM’s commitment to quality and transparency sets it apart in the competitive pet food market.
3i invested around £125m in MPM, taking a controlling stake alongside the existing management team. This partnership has fueled MPM’s remarkable growth.
The private equity firm has been pivotal in expanding MPM’s market reach, leveraging expertise to enhance the brand’s global presence.
After launching in Japan in 2019, MPM reported an astounding 500% increase in turnover by November 2020.
The Japanese market has become a key revenue stream, supported by a local distributor. MPM’s financial success forecasts a substantial £5m in sales within five years.
This growth narrative is consistent in other markets like the United States, where sales have doubled year-on-year. The Department for International Trade has backed MPM since 2014.
MPM’s expansion story is notable not just in Japan, but also across Brazil, Peru, Mexico, Taiwan, and China.
Each of these markets has embraced the brand, contributing to its international success story.
In the U.S., MPM has established significant market presence with continuous year-on-year growth, bolstering its global stature.
The auction, led by Harris Williams, signifies a strategic move for 3i, and it is expected to conclude next year.
This potential exit is anticipated to be amongst 3i’s largest, showcasing the success of MPM’s business model. MPM is well-positioned to attract buyers drawn to its robust financials and leading market position.
Despite the upcoming transition, MPM’s dedication to natural, high-quality pet food remains unwavering.
The sale of MPM could have significant implications for the pet food industry, possibly setting new benchmarks for natural pet food brands.
MPM’s success story may inspire similar companies to seek investment partnerships to drive their growth.
This case illustrates the pivotal role of strategic investment in scaling niche market players to global prominence.
As 3i prepares to exit its investment, MPM stands as a testament to the power of strategic investment and market innovation.
The company’s sustained international growth and commitment to quality promise a bright future beyond this transition.
MPM has consistently proven its prowess in the pet food market with its innovative approach.
The anticipated sale by 3i is a testament to MPM’s enduring success and market appeal.