Alphia, a private equity-owned pet food manufacturer, is exploring options that could value the company at over $1 billion. The company is working with Goldman Sachs Group Inc to explore a potential sale, according to people familiar with the matter.
Pet food companies have been able to attract generous multiples from potential buyers in recent years, due to a worldwide shortage of pet food and increased demand. Notable deals include General Mills Inc’s acquisition of Blue Buffalo Pet Products Inc and Mars Petcare’s acquisition of Champion Petfoods.
Alphia owns animal nutrition products maker LANI, which was previously known as Lortscher’s Animal Nutrition, and Veracity Logistics. No deal is certain and JH Whitney could choose to keep Alphia. Goldman declined to comment and Alphia and J.H. Whitney did not immediately respond to requests for comment.