3i invests £125m in MPM to accelerate expansion

Natural pet food group MPM is set to receive a £125m investment from 3i Group in a bid to accelerate the group’s international expansion. 

The Manchester-headquartered pet company sells dog and cat food under the Applaws, Encore and Reveal brands. The company differentiates itself through its high quality, human-grade products, natural, clean-label ingredients and “cat first” proposition.

News of the latest investment comes after the group was recently sold by ECI Partners. ECI first invested in MPM in March 2016 to help support its international growth. Over 60% of MPM’s revenues are now international, with “strong” growth in both the US and APAC markets during ECI’s involvement. 

Over the past six years, MPM has grown “consistently” at double digit CAGR and is described as a “highly cash generative” business. 

It comes as the premium wet cat food market is forecast to continue to grow at around 7% per year, with a market that has “proven resilient” through the pandemic.

Rupert Howard, Director, 3i, said: “We have been tracking MPM for a long time and are delighted to invest in this rapidly growing, resilient business. Owners looking to feed their pets natural, high quality food with recognisable ingredients are drawn to MPM’s brands across a variety of channels and geographies. 

“MPM fits well with 3i’s desire to invest in strong mid-market businesses where we see significant headroom for further international growth. We look forward to supporting Julian, James and their excellent team with their ambitions.”

Julian Bambridge, CEO, MPM, added: “3i has a formidable track record in helping its companies to grow internationally, particularly in the US market. 

“This will be especially key for MPM as we look to accelerate our expansion in North America. The 3i team also has significant brand expertise through a number of its consumer investments which will be of great benefit to MPM.”

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