Enact Acquires Pet Food Retailer and Wholesaler Kennelpak
Enact, the SME investor managed by Endless LLP, has acquired Kennelpak Limited from its family owners, the transaction value is undisclosed. Kennelpak is a wholesale supplier of own brand and third party branded pet food and associated pet products, with its own retail chain under the “Kennelgate” brand. The business is headquartered in Nottingham, England and employees 275 permanent and temporary staff. In the year ended March 2017 the business was profitable from sales of over £23 million.
Established in 1974, Kennelpak retails a selection of pet food, pet accessories and toys amongst other products for dogs, cats, birds, aquatics, reptiles, horses and home farming. Additional services also include grooming, local training, nutritional advice and licensed medication. Having initially started out as a wholesaler of its own brand and third party pet food brands, Kennelpak identified a niche for specialist pet food outlets to supply the public with bulk pet food and pet related items. UK based, the company now has 21 retail stores (primarily around The Midlands) and a retail website providing a click and collect service.
Investment Director, Chris Cormack, who lead the transaction for Enact said “The business is well positioned in a growing sector and we believe that Kennelpak is an exciting platform from which we can drive accelerated growth. We will be introducing a new Non-Executive Chairman and CEO with the relevant experience to support this strategy.”
Chris Peck, who is joining the Board as Non-Executive Chairman, commented: “I’m delighted to be joining Kennelpak at this point in its journey, alongside Enact. We believe we have invested in a good business and brand which will benefit from additional investment and scale.” Mr Peck was formerly Chairman at West Cornwall Pasty Company, an Enact investment that was sold to Samworth Brothers in December 2016, delivering an outstanding return on investment.
Chris Cormack further commented “The acquisition of Kennelpak is the third investment by Enact in 2017, following investments in Arran Aromatics and Theo Fennell in recent months. We remain committed to identifying opportunities in the lower mid-market, targeting transactions that require investment of up to £5 million. We continue to see a number of opportunities nationally and following on from the announcement of Richard Harrison’s role in targeting Enact opportunities in the North West we are now looking to recruit dedicated Enact deal origination resource in London to enhance our national offering.”
Chris Cormack was assisted by Paul Denvers from Enact. Simon Pilling and James Cook from Bond Dickinson provided legal advice with Russ Cahill providing tax advice. KPMG assisted Enact with financial due diligence. Karen Edwards of Clearwater International acted as advisor to Kennelpak and its shareholders.