After previously making competing bids, Hellman & Friedman and EQT have opted to make a joint offer for German pet supply company Zooplus, valuing the company at €3.7 billion (around $4.3 billion).  

The offer of €480 per share comes a little over two weeks after H&F increased its cash bid from €460 to €470 per Zooplus share, matching an offer made by EQT earlier in the month. The latest offer represents an 85% premium to the company's three-month volume-weighted average. 

Stefan Goetz, a partner at H&F, and Johannes Reichel, head of EQT's advisory team in Germany, said in a joint statement that the decision resolved a deadlock in the tender process and enabled the continued pursuit of the investment. KKR had also been in talks to acquire the Munich-based company but dropped its bid in September. 

Zooplus was founded in 1999 and sells its products in 30 European countries. In its half-year report, the company said it was benefiting from the fact that the COVID-19 pandemic has encouraged more Europeans to get a pet. The number of new dog registrations in Germany increased in June 2020 by 25% year-on-year, according to the report.

Other PE firms are tapping into this trend. Last month, for example, CVC Capital Partners reportedly reached an agreement to buy Medivet, a UK chain of veterinary clinics owned by Inflexion Private Equity, in a deal worth more than £1 billion (about $1.4 billion).

Featured image by Carol Yepes/Getty Images

Related content