Developments during the summer lull

The takeover merry-go-round continues to revolve in the pet supplies business. Nestlé Purina has swallowed up Merrick, Bosch Tiernahrung has acquired Harrison Pet Products,  NDX has purchased Lantmännen Doggy, and Tropica Aquarium is taking over Wet Pets. These acquisitions were reported in the middle of the summer recess, showing that the pet sector remains active even during this period. What is striking is that only one of these four takeovers was down to a financial investor; they were the work of market players aiming to strengthen their market position in certain regions or segments by acquiring other companies. 
This isn't necessarily a sign that private equity is pulling out of the pet sector. The acquisition of the leading US pet store chain PetSmart by BC Partners sent a clear message at the start of the year that financial investors continue to show strong interest in the pet product business. And no wonder: the pet sector is exhibiting better growth than the economy as a whole in many countries. Add to this the fact that the sector is relatively immune to economic trends, and this growth makes it an ongoing magnet for investors.
The aforementioned acquisitions show, however, that companies with a solid base don't always need the input of financial investors. This is true above all of the two alpha players Mars and Nestlé, which have carved up a large portion of the pet food market between them. The takeovers made by both companies in the last few years demonstrate the firm resolve of Mars and Nestlé to maintain and consolidate further their leading market position in the pet sector. 

Spectrum Brands is also attracting growing attention in the pet food segment. A company that surprises many in the pet sector time and again with its outstanding work, Spectrum Brands has acquired the European business of Iams and Eukanuba, or at least a large part of it, and increasingly poses a serious threat to the big two. Sector analysts believe that the company will consolidate its position in the pet supplies market in the next few years, and further takeovers could even be on the cards.
A lot will probably happen in the market before Interzoo comes around again next May. Further takeovers are likely to be announced in the months to come too. The advances made by…