Pet City – How Mantzouranis Mantzouranakis and his family became willing sellers

As of yesterday, the Pet City of the Mantzouranaki family is majority owned by the newly established BC Partners GR Investment LP.

This is a special investment scheme, which was created last July by the investment company BC Partners and aims to seek investment opportunities in fast-growing small and medium-sized enterprises in Greece.

The acquisition of the majority stake in Pet City is the virgin investment of BC Partners GR Investment LP and as Nikos Stathopoulos, Partner and Head of BC Partners, emphasizes, the interest of the investment company in Greece is great, as it has developed into a attractive investment destination as one of the fastest growing economies in Europe.

Given that Mr. Stathopoulos, as head of BC Partners, is according to the willing buyer, behind investments of 4 billion euros in Greece in the last 15 years (the acquisition of Pet City was preceded by the acquisition of Forthnet-NOVA and Wind), it is interesting how the Mantzouranakis family became a willing seller.

Was it price or growth?

Whether the motive for the sale was the hefty price, we will find out at the end of the year when the transaction is completed and judged by the Competition Commission.

However, information indicates that the Mantzouranakis family became a willing seller for the company to take the above step and that the sale has the characteristics of a strategic partnership.

It is recalled that the new investment is made in an industry in which BC Partners has expertise and know-how, having made significant investments internationally. Among them are PetSmart, which has the largest network of pet products and services stores in the United States, Chewy, which is the leading online pet store in the United States with a market capitalization of about $ 32 billion, and VetPartners, a leading company in the field of veterinary clinics. in the UK. The Greek market is expected to continue to benefit from the strong structural growth of the wider economy and in particular the pet market, as the rates of ownership and expenditure on pet products and services begin to converge with European averages.

Division of the commercial sector

Since last year, the company has proceeded with corporate restructuring moves.

It should be noted that by decision of the Extraordinary General Meeting of shareholders of “PET CITY Societe Anonyme Commercial and Industrial Animal Feed Company SA” in December 2020 it was decided to partially split the commercial sector and its contribution to the absorbing public limited company ” Real Estate Management SA “, which on 31/12/2020 was renamed PET CITY Group Societe Anonyme Commercial and Industrial Animal Feed Company.

Explosive growth

Pet City has all the characteristics that BC Partners is looking for: it holds a leading position in its industry and significant growth prospects. It is characteristic that the management for this year expects a sales increase of 15% and pre-tax profits to + 20%.

According to the management, “the company’s strategy is to expand within the next three years to the largest cities in the country. The company in the year 2021 will operate 10 to 12 stores. Also, the company, by updating the overall provision of services to the consumer and its participation in all European industry fairs, aims to launch new innovative products in the field of nutrition and animal hygiene “.

From wholesaler to No1 retailer serving 3,000,000 customers

By far the No. 1 company in the domestic pet products and services industry, Pet City’s turnover reached € 45.67 million in 2020, with pre-tax profits reaching € 7.14 million and net profits of € 5 million. , EUR 43 million.

As of December 31, 2020 the total liabilities of the company were at 10 million euros and the total Equity 12.88 million euros. The net book value of the company was 4.94 million euros.

Mantzouranis Mantzouranakis, his wife Barbara and their daughter Androniki, former owners of Pet City and now a minority shareholder, managed in more than 12 years to more than triple the company’s sales both through acquisitions and, more importantly, through organic growth.

The company maintains 68 branches in the prefectures of Attica, Evia and Thessaloniki. In fact, within 2020, 8 new stores were established. As of December 31, 2020, it employed a total of 644 people.

One of the most distinctive features of Pet City stores is their size which ranges from 200 to 2,000 sq.m. In addition, the products available from Pet City exceed 15,000 including products from branded and recognized companies.

How it all started

Originally from Skyros, Mantzouranis Mantzouranakis founded the company in 1988 and for the next 7 years was active in the wholesale sale of pet products with a clientele that exceeded 1,200 pet shops throughout Greece.

However, in 1996, the corporate interest shifted to retail, importing and marketing pet food and accessories. Thus the first store of the company Pet City in the area of ​​Paiania was inaugurated .

In 1998, the second store – and the first mega store – appeared in Glyfada.

In 2001, Pet City acquired City Zoo and in 2006 acquired the Grekovet and Pet Champion chains.

In 2007 the stores had reached 13 and the next year, in addition to the opening of new stores, the operation of the state-of-the-art veterinary center “Vet City” began.

In 2013 the company’s sales network had reached 45 stores, while in 2015 it goes outside Attica with the opening of 2 stores in Chalkida.

The Pepsico facility in Koropi

In 2017, the Manzouranaki family quietly bought the Pepsico facility in Koropi with their own funds. The multinational has been trying for a long time to find a buyer, having already closed the water factory in Loutraki.

Pet City moved its headquarters to Koropi, as well as its general warehouses. It is noted that the specific facilities extend to 17 acres while the building infrastructure occupies 12,000 sq.m.

Market information indicates that the property was purchased for about 3 million euros.