Griffin Pet Products and Services MA Report 2025

Despite 2024 being characterized by high interest rates and political uncertainty, we saw the global M&A market gain continued momentum as the year came to a close, showing a 25%+ and 13%+ YoY jump in deal values and volumes, respectively. We
expect this momentum to accelerate into 2025 driven by pent up demand from both strategic and private equity buyers. As a more stable economic backdrop looms, strategics are beginning to refocus efforts on driving growth through M&A. Additionally, growing urgency among private equity groups to put capital to work, driven by the large and aging dry powder overhang and an increasingly eager limited partner community, is driving demand for increased M&A in 2025. Lastly, while the Fed’s rate path is uncertain, the consensus expectation is for rates to either stay flat or fall further through 2025 and thereafter, creating a more favorable rate environment for accelerated M&A activity.

Key Takeaways

• Driven by increased pet ownership and consumer spending on pets, industry sales are poised for compelling growth
• Despite decreased M&A activity in 2024, the pet segment is positioned for future growth as macro conditions improve
• Both financial and strategic investors are eager to put meaningful capital to work in this sector

For more information, please contact Sophea Chau, Senior Managing Director, at 617.603.8963, or Max Dadagian, Senior Associate, at 617.603.8968.