Private equity groups Hellman & Friedman and EQT have ended a bidding war for pet food retailer Zooplus with a joint bid that values its equity at € 3.7 billion, in the latest example of the industry paying a huge premium. for buying a listed company.
The pair made a final offer of €480 per share, 85 percent above a three-month trading benchmark before the bidding war began, Zooplus said on Monday.
Acquisition pools are paying the highest premiums in more than two decades, averaging 45 percent for European companies in 2021, according to Refinitiv data, after raising record-sized funds and amid fierce competition for agreements.
The premium paid by the company is “remarkable,” Zooplus CEO Cornelius Patt said in a statement.
“It has been the top priority of management throughout the process to act in the best interest of the company and maximize value for our shareholders while providing certainty in transactions,” he said.
Hellman & Friedman began the battle for control of the pet care company with an offer of € 390 per share in August. The offer was raised to 460 euros in September after Zooplus said it was also in talks with KKR and EQT about possible offers. EQT, which already owns the IVC Evidensia veterinary surgery roll-up, bid € 470 in September, and Hellman & Friedman agreed to match it this month.
Under the agreement, which is supported by Zooplus management and its oversight board, EQT will join Hellman & Friedman’s tender vehicle with the same governance rights. The deal needs the approval of more than 50 percent of Zooplus shareholders.
“With this step, we have found a solution to resolve the current deadlock in the bidding process and enable the continued pursuit of investment,” Hellman & Friedman partner Stefan Goetz and EQT partner said in a joint statement.
