Absolute Pets sees strong growth following Sanlam Private Equity investment

Today, ten months after taking a majority stake in South Africa's largest pet care retailer, Absolute Pets, Sanlam Private Equity (SPE) – the private equity arm of Sanlam Investments – announced that over 80 new jobs had been created and an additional 25 stores opened since the acquisition in May 2021.

The growth aligns with Sanlam Investments' commitment to protecting and growing jobs. In 2020 Sanlam committed R2.25 billion to set up three funds, the Investors Legacy Range, which aimed to contribute to economic revival during and post the pandemic. One of the three funds is the private equity fund from which the investment was made.

Absolute Pets was founded in 2005. In 2013, it had eight stores and, by 2022, this number had increased to 120. By 2026, the company aspires to own 200 stores and create more than 300 new direct and 950 indirect jobs and to further grow its rapidly expanding e-commerce channel.

Globally and locally, the pet care industry is in a structural growth phase, driven by increased pet ownership, the 'humanisation of pets' (owners increasingly treating their pets as part of the family) and the premiumisation of pet products. In South Africa the pet care market is expected to grow to over R8.5 billion by 2025, according to data by Euromonitor International reported in BusinessInsider.

Absolute Pets meets demand through a premium retail product range that spans pet food, healthcare products, accessories, toys and treats.

SPE Head of Private Equity and Mezzanine Finance, John Seymour, says, "We are excited about the strong sectoral tailwinds that the pet care industry is enjoying as demand grows. The management team of Absolute Pets has built a great business that has shown impressive growth while also offering defensive characteristics, and we've forged a strong partnership that has delivered robust results."

Seymour says the company's employee profile is in line with Sanlam Investments' drive to support the recovery and growth of South Africa's economy, "The majority of Absolute Pets' 485 employees are from previously disadvantaged backgrounds, with 68% being women and 70% under 35. With any new job created comes a positive knock-on effect for surrounding communities, so we look forward to seeing the impact of this investment over time."

Absolute Pets was SPE's second major investment of 2021, the first being a majority stake in Cavalier Group of Companies, a premium processor of red meat products.

SPE is one of the alternatives businesses within Sanlam Investments, the Sanlam Group's investment arm. Sanlam Investments is South Africa's largest black-owned asset manager and is committed to making an impact through transformation, job creation and preservation, growing and developing people, building communities, protecting the environment and creating sustainable economic growth.