Sanlam Private Equity, the private equity division of Sanlam Investments, has announced the successful sale of its majority stake in leading pet care retailer, Absolute Pets, to Woolworths Holdings Ltd. This strategic move marks the first exit from the SPE Mid-Market Fund I, demonstrating Sanlam’s commitment to driving economic growth and job creation in South Africa through private equity investments.
Key Points:
- About Absolute Pets:
- Absolute Pets is South Africa’s foremost specialist pet care retailer, offering an omnichannel platform encompassing a wide range of pet products and services, from food and healthcare items to accessories, toys, grooming, and pet insurance.
- Sanlam’s Investment and Expansion:
- Sanlam Private Equity played a pivotal role in supporting Absolute Pets’ rapid expansion, contributing to the growth of the retailer’s footprint to over 150 stores nationwide.
- Woolworths Acquisition:
- Woolworths Holdings Ltd. is set to acquire 93.45% of Absolute Pets shares from Sanlam Private Equity and Absolute Pets management, signaling a significant development in the pet care industry.
- Industry Growth and Opportunities:
- The pet care sector is experiencing robust growth, driven by factors such as increased pet ownership, a trend towards humanization of pets, and higher spending on premium pet products and services.
- Partnership Success:
- Sanlam Private Equity’s strategic partnership with Absolute Pets has been fruitful, resulting in the creation of over 200 jobs and substantial business expansion.
- Comments from Stakeholders:
- John Seymour, Chairman of Sanlam Private Equity, emphasized the successful collaboration with Absolute Pets, highlighting the alignment of strategies with the booming pet care industry.
- Stephen Warner, CEO of Absolute Pets, expressed gratitude for the support and valued contribution of Sanlam Private Equity to the growth of the business.
- Pending Regulatory Approvals:
- The conclusion of the transaction is subject to regulatory and commercial conditions, including approval from competition authorities in South Africa.
Conclusion:
The sale of Sanlam Private Equity’s majority stake in Absolute Pets to Woolworths marks a significant milestone in the growth of the pet care industry in South Africa. This strategic move reflects the strong potential and opportunities within the sector. Sanlam’s commitment to job creation and economic development through private equity investments is exemplified by this successful exit, setting a positive precedent for future ventures.