The private equity owner of Asda has snapped up a majority stake in pet retailer Jollyes.
The deal with TDR Capital will enable the pet specialist to invest in lower prices and accelerate its store opening programme to compete with rival Pets at Home.
Details of the transaction were not disclosed, but the group’s current owner Kester Capital said the sale delivered a 4.2x return on its initial investment into the business in 2018.
Under its ownership, the pet retailer’s profits and sales have more than doubled, while its store footprint rose from 64 to 100.
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The deal, expected to complete at the end of March, will see former Asda boss and current Poundland owner Pepco chair Andy Bond become non-executive chairman.
Jollyes chief executive officer Joe Wykes said the business has been “growing at pace over the past two years” and the new investment “will help us build a much bigger stage, accelerating our growth plans and giving us the resources we need to bring more value to more places”.
“We look forward to partnering with TDR on the exciting next phase of our growth in the UK,” he said.
TDR managing partner Gary Lindsay said: “In Jollyes, we identified a solid business with excellent foundations and significant potential to grow even more ambitiously in the years to come.
“Through our investment, we will deploy our significant retail expertise and support the company in rolling out its store expansion plans even more rapidly, including opening more grooming and veterinary-led community pet clinics.
“We are confident that Jollyes can further cement itself in the pet retail sector and increase the competitiveness of the market, which will benefit customers, colleagues and suppliers alike.”
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