Real Pet Food Co pencils in 2025 exit; Temasek takes the lead

afr.com:

The cat is out of the bag at The Real Pet Food Company.

Germaine Chua became the chief executive of Real Pet Food Co in January. 

Street Talk understands a clause in the $1.5 billion pet food manufacturer’s freshly inked shareholders’ agreement paves the way for an exit in May 2025, which – contrary to a report in The Australian – would mean investors are unlikely to begin preparations for a sale process until this time next year at the earliest.

Before its May $243 million refinancing, TRPC, which made about $80 million in earnings before interest, tax, depreciation and amortisation over the past 12 months, was owned by an Asia-based consortium comprising Singapore’s Temasek, Hosen Capital, New Hope Group, CIC International and GenBridge Capital.

That refinancing saw CIC sell its stake to Temasek, which now is the largest shareholder in the group. As a result, the $421 billion investment firm owned by the Singaporean government has become more influential in the decision-making at TRPC – to the benefit of the wider shareholder group.

Pets and vets has been a happy hunting ground for private equity. However, strategic types would also be targeted in any sale process. Of course, Nestle is the obvious strategic buyer. The food giant is TRPC’s biggest rival alongside Mars Petcare, which owns brands such as Pedigree and Whiskas.

Both Germaine Chua and David Grant, TRPC’s current and former chief executive, have had stints at Nestle – Grant as Nestle’s general manager and Chua as Nestle Purina Petcare Australia’s head of market development.

TRPC is one of the largest pet food companies in Australia and the largest producer of fresh chilled pet food in the world. The business began in 1994 when Tony and Christina Quinn opened