Creador to Buy 40% Stake in Malaysia’s Pet World International
Private equity firm Creador said on Tuesday it would acquire a 40% stake in Malaysia’s Pet World International, the country’s largest local pet food player.
The deal, which is still subject to regulatory approvals, is expected to close in the third quarter of 2023. Creador will invest 300 million ringgit ($74 million) in Pet World International, which will be used to expand the company’s manufacturing capacity and distribution network.
Pet World International was founded in 1989 and is headquartered in Kuala Lumpur, Malaysia. The company manufactures and distributes a wide range of pet food and accessories, including dry food, wet food, treats, and toys. Pet World International has a market share of over 30% in Malaysia and exports its products to over 10 countries.
Creador is a Singapore-based private equity firm that manages over $2 billion in assets. The firm has invested in a number of businesses in Southeast Asia, including food and beverage, healthcare, and consumer goods.
“We are excited to partner with Pet World International,” said Creador’s managing partner, Brahmal Vasudevan. “The company has a strong track record of growth and we believe that there is significant potential for further expansion in the Malaysian and regional pet food markets.”
About Pet World
Pet World International (PWI) is a Malaysian company that manufactures and distributes pet food and accessories. The company was founded in 1989 and is headquartered in Kuala Lumpur, Malaysia. PWI has a market share of over 30% in Malaysia and exports its products to over 10 countries.
PWI’s business model is based on the following pillars:
- Branding: PWI has a strong brand name in the Malaysian pet food market. The company’s products are known for their high quality and affordable prices.
- Distribution: PWI has a wide distribution network in Malaysia. The company’s products are available in pet shops, supermarkets, and hypermarkets across the country.
- Innovation: PWI is constantly innovating its products. The company has a team of in-house researchers and development professionals who are always looking for new ways to improve the quality and variety of PWI’s products.
- Marketing: PWI invests heavily in marketing its products. The company uses a variety of marketing channels, including television, print, and online advertising.
PWI’s business model has been successful in helping the company to grow its market share and expand its operations. The company is well-positioned to continue to grow in the future, as the demand for pet food and accessories in Southeast Asia is expected to continue to grow.
Here are some specific examples of how PWI has implemented its business model:
- Branding: PWI has invested heavily in branding its products. The company has a strong brand name in Malaysia and its products are known for their high quality and affordable prices. PWI has also launched a number of new brands in recent years, which has helped to expand its market share.
Pet World International’s managing director, Tan Wee Joo, said that the company is “pleased to welcome Creador as a shareholder.” He said that the investment will help Pet World International to “accelerate our growth plans and achieve our vision of becoming the leading pet food company in Southeast Asia.
The deal is the latest in a series of investments by private equity firms in the Malaysian pet food market. In 2022, EDBI, the investment arm of the Singapore government, invested $100 million in Pet Lovers Centre, another Malaysian pet food company.
The growing popularity of pets in Southeast Asia is driving demand for pet food. The region is home to over 100 million households with pets, and this number is expected to grow in the coming years. The pet food market in Southeast Asia is worth an estimated $5 billion and is growing at a compound annual growth rate of 7%.
The investment by Creador in Pet World International is a sign of the growing interest of private equity firms in the Malaysian pet food market.
The deal is expected to help Pet World International to expand its business and reach new markets.
