Musti – a pet products company, a subsidiary of Sonae, which operates in the Nordic countries – acquired PetCity, a Baltic counterpart. The acquisition was announced this Monday and marks Musti’s expansion into new geographies, while reinforcing Sonae’s internationalization strategy.
PetCity operates 46 retail stores and 16 veterinary clinics in Estonia, Latvia and Lithuania, including an e-commerce platform that operates across the region. With 472 employees, the company achieved an aggregate turnover of 31.5 million euros last year.
Musti has 1,600 employees and operates in Finland, Sweden and Norway through 342 stores, having recorded net sales of 426 million euros in the 2023 fiscal year. In March, Sonae increased its stake in the company to 80%.
The purchase price was not revealed, however PetCity is valued at 18 million euros. It currently belongs to the Magnum Group. The acquisition should be completed in 2024.
“Firstly, I want to welcome the PetCity team to the Musti group. I am extremely excited about what we can achieve together in the growing Baltic market as we share best practices between the Nordic and Baltic markets. The move to the Baltics represents a natural next step for international expansion and Musti’s first acquisition as part of the Sonae group”, highlights David Rönnberg, CEO of Musti Group.
“The acquisition of PetCity is an important milestone in the execution of our growth strategy for Musti. With the entry into the Baltic countries – Estonia, Latvia and Lithuania – Musti will expand its unique value proposition in the pet retail sector estimation, now being present in a total of six countries”, indicates, in a statement, João Dolores, CFO of Sonae.
“The company thus positions itself as a growth platform in an increasingly relevant market sector in which we have great ambition. This operation also represents another step in accelerating the internationalization of the Sonae Group through leading companies in their sectors, allowing us to improve the way we serve customers in multiple geographies”, he adds.
News updated with PetCity’s market value
Source: www.jornaldenegocios.pt
