宠物行业更新报告：2025年3月

TABLE OF CONTENTSTom ElliottManaging Director813-382-6495telliott@capstonepartners.comCONTACT OURPET SECTORBANKERKeySector TakeawaysSector Demand Drivers Hold Strong, Competition Heats UpM&A Opportunities Remain Robust in Evolving SegmentsPrivate Equity Add-Ons Uphold Pet M&A ActivitySponsors Headline Acquisitions Across Pet SegmentsCapstone Partners AdvisesUltra Pet on Sale to Oil-DriSelect Pet Sector TransactionsSelect Public Companies Trade at Premium MultiplesPet Report ContributorsFirm Track RecordCapstone’s Proprietary Research Reveals Top Services in DemandEndnotes456789101112131415 Internal Use Internal Use•PreliminaryAnalysis•Feasibility Study•ESOPImplementation•Design &ExecutionESOPAdvisorycapstonepartners.com•TransactionAdvisory•InterimManagement•PerformanceImprovement•LitigationSupportFinancialAdvisory•Equity Advisory•Debt Advisory•InfrastructureFinanceCapitalAdvisory•Sell-sideAdvisory•Buy-sideAdvisory•Recapitalizations•Mergers & JointVenturesMergers &AcquisitionsSign Up for Sector Insights.Delivering timely, sector-specific intelligence to your inboxOne of our core capabilities is to deliver sector-specific intelligencedesigned specifically for sector leaders, private equity firms and theiradvisors.Our sector reports and featured articles deliver real-timeaccess to key sector data including:•Emerging sector trends•Acquirer and investor appetites•Mergers & acquisitions market analysis•Notable transactions•Public company dataReceive email updates with our proprietary data, reports, and insightsas they're published for the sectors that matter to you most.A DIFFERENT KIND OF FIRM. BUILT FOR THE MIDDLE MARKET.SubscribeCapstone Partners, a subsidiary of Huntington Bancshares Incorporated(NASDAQ:HBAN), has been a trusted advisor to leading middle marketcompanies for over 20 years, offering a fully integrated range of expertinvestment banking and financial advisory services uniquely tailored tohelp owners, investors, and creditors through each stage of thecompany's lifecycle.SUPERIORCLIENTRESULTSFULLSERVICECAPABILITIESMIDDLEMARKETFOCUSTOPRANKEDPERFORMANCEESTABLISHEDBRANDREPUTATION•Special SituationsTurnaround•Restructuring•Bankruptcy•InsolvencySpecialSituations &Restructuring Internal UseKEYSECTORTAKEAWAYSCapstonePartners’ConsumerInvestmentBankingGroupispleasedtoshareitsPetreport,withinsightsandanalysisonkeysectordynamics,buyeractivity,andexpectationsfor2025.Mergerandacquisition(M&A)activityin the Pet Care market declined year-over-year(YOY)in 2024.However,demand drivers haveremainedhealthy.Petspendingsawsustainablegrowthduringtheyearasthesectorcontinuedtonormalizefollowingthepandemic-relatedboominpetownership.Shiftingconsumerpreferenceshavecreatedampleopportunityforsectorparticipantstocapturegrowthinthenewyear.Severaladditionalkeyreporttakeawaysareoutlinedbelow.1.Sponsor-ledtransactionsflourishedin2024asprivateequitygroupsbolsteredportfolioholdingsinpreparationforexits.2.HighfragmentationinthePetGrooming&Boardingsegmenthasmadeconsolidationandvaluationmultiplearbitrage opportunities attractive as players jockey to gain market share and achieveeconomiesofscale.3.Public companies have indicated their acquisition pipelines have started to build,bolsteringexpectationsthatthePetM&Amarketwillpickbackupin2025.4.Pethumanizationtrends,preferencesforscience-backedpetproducts,andvalue-addedserviceshavecontinuedtodrivegrowthprospectsandinnovationinthePetsector.5.TheadoptionrateofpetinsurancebyconsumersandthecontinuedgrowthofonlinesalesaretwokeymacrofactorsanticipatedtoshapethePetsectorinthecomingyears.CapstonePartners has developed a full suite of corporate finance solutions to help privately-ownedbusinessesandprivateequityfirmsnavigatethrougheachstageofacompany’slifecycle.Thesesolutionsincludefinancialadvisoryservices,mergerandacquisitionadvisory,debtadvisory,equitycapitalfinancingandemployeestockownershipplan(ESOP)advisory.TolearnmoreaboutCapstone’swiderangeofadvisoryservicesandPetsectorknowledge,pleasecontactus.Pet Care Market Tailwinds Remain Strong,Private EquityAdd-Ons Bolster M&AActivity Internal Use0.1%0.4%-0.2%-0.1%0.9%1.9%1.7%1.0%-1%0%1%2%3%Q4 '23Q1 '24Q2 '24Q3 '24Pets & Related ProductsVeterinary & Other Services4.5%1.5%0.5%1.5%1.9%13.1%9.2%7.6%6.7%4.8%0%5%10%15%20%25%30%Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Pets & Related ProductsVeterinary & Other ServicesSource: U.S. Bureau of Economic Analysis, IBISWorld, and Capstone PartnersSECTOR DEMAND DRIVERS HOLD STRONG, COMPETITION HEATS UPPetownershaveremainedpassionateintheU.S.,leadingto steady growth in spending on petproducts,services,andconsumables.ExpendituresonPet&RelatedProductsandVeterinary&OtherServicesincreased1.9%and4.8%YOYinQ42024,accordingto the Bureau of Economic Analysis.1Growthhasdeceleratedslightly,landingatmoresustainablerates compared to 2023 figures,providingevidence that the Pet sector hasnormalizedfollowingthepandemic-relatedboominpetadoptions.Onlinechannelshavecontinuedtoseeabovemarketsalesgrowthinpetproducts.Onlinepetfoodandpetsupplysales