The pet care portfolio owned by conglomerate JAB is looking at going public as demand surges for animal healthcare services, Bloomberg reported Monday (May 10).
JAB, a Luxembourg-based conglomerate, built that portfolio in 2019 through the acquisitions of Compassion-First Pet Hospitals and National Veterinary Associates, could be seeking a U.S.-based listing later this year or early next year, according to sources Bloomberg spoke with. JAB is a vehicle for Germany’s billionaire Reimann family and manages over $50 billion in assets.
However, nothing has been set in stone yet, and the JAB might also end up seeking an alternative to an IPO.
JAB’s entrance into the market was “well-timed,” the report said, as the pandemic saw a surge in consumers spending more on cats and dogs, including at healthcare companies. The pandemic also saw more being spent at JAB’s hospitality companies, including Krispy Kreme Donuts and Pret A Manger, which bore the brunt of the pandemic’s economic impact.
JAB filed confidentially for a Krispy Kreme IPO last month and is considering seeking $4 billion for that business. JAB bought the donut company for around $1.35 billion.
JAB is also looking at options for its Panera chain of bakery cafes, including an IPO this year or next.
Krispy Kreme and Panera are the latest companies to be lined up for a return to the public markets by JAB, Bloomberg reported. They follow the 2020 listing of coffee giant JDE Peet’s, which sought to return money to investors after aggressive expansion in the sector.
PYMNTS reported earlier this year that the pet care economy has never been bigger, with retailers like Walmart, Wagable, Chewy, Cat Person and others all looking at making money in the industry.
The reason for the increase in interest comes from the pandemic’s focus on staying inside. But now, there’s expected to be more changes in spending as people get back to normal routines with the advent of vaccinations.