Platinum Equity has acquired Cosmic Pet, a provider of pet products. No financial terms were disclosed. Platinum will merge Cosmic Pet with portfolio company Petmate.
LOS ANGELES, Oct. 25, 2021 /PRNewswire/ — Platinum Equity announced today the acquisition of Cosmic Pet, a leading designer, marketer and distributor of pet products, including toys, beds, collars and leashes, treats, feeders and bowls, and other accessories. Cosmic Pet will be combined with Platinum Equity portfolio company Petmate. Financial terms were not disclosed.
Cosmic Pet leverages its portfolio of brands, which includes Hyper Pet, Pet Fusion, Our Pets, Pet Zone, Wild Eats and Pet Craft Supply Co, and a large and differentiated in-house international sourcing operation to serve the branded and private label needs of its blue-chip customer base.
Petmate, acquired by Platinum Equity in September 2021, manufactures, sources and markets a diverse product line that includes plastic and wire pet kennels, dog houses, toys, food storage, bedding, treats and chews, and other pet-related products and accessories.
“The U.S. pet industry continues to demonstrate steady growth fueled by increased consumer demand for products that improve the quality of life for pets. As the market grows, large national retailers are increasingly looking for partners with diverse and comprehensive product portfolios,” said Platinum Equity Managing Director Adam Cooper. “This combination will create a differentiated platform of scale with powerful brand equity, a unique and innovative product mix, diversified end channels, and expertise in both branded and private label offerings.”
Petmate CEO Alice Tillett will lead the combined company.
“Petmate and Cosmic Pet are an ideal fit, with complementary strengths and a shared commitment to serving the needs of passionate pet owners throughout the country,” said Ms. Tillett. “This is an exciting opportunity to bring together two best-in-class companies facilitating a transformational step in the growth and evolution of our business.”
Cosmic Pet’s operations in Wichita, Kansas, will continue to serve as an important part of the combined company’s network.
Platinum Equity expects to continue using its M&A resources to help expand on the platform.
“The addition of Cosmic Pet is an important first step, but the market remains highly fragmented with numerous additional opportunities to accelerate growth through acquisition,” added Mr. Cooper.
BMO Capital Markets served as financial advisor to Platinum Equity on the acquisition of Cosmic Pet, and Gibson, Dunn & Crutcher LLP and Alston & Bird served as legal advisors.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.