The Business
Armitage is the largest independent supplier of pet treats and accessories in the UK. The business has a number of brands but the most significant is “Good Boy”, a leading premium dog treats brand. From its operations in Nottingham, Armitage supplies to a broad customer base, however its focus is increasingly on selling a core range of premium dog treats and accessories into the major UK grocers.
Investment thesis
The investment thesis for Armitage was focused on capitalising on what was a strong product proposition in an attractive sector, but which lacked the operational foundations and capabilities to support further growth due to a lack of investment. Alongside building out management, there was an opportunity to improve operations, and procurement, shifting to a scalable warehouse and improving supply chain control. There was a clear need to implement new finance and IT systems, allowing the team to focus on profitability and margin management.
Exit
Armitage’s transformation was all encompassing and touched all areas of the business. It became a highly desirable asset with an assured path to exit. Acquisition by an overseas strategic trade, Spectrum Brands, was validation of the strategy we pursued and the future potential that we have created in the business, with the transaction delivering a 5.7x money multiple for investors (80% IRR).
