How Private Equity Is Rolling Up the Pet Care Industry

Episode notes

In this episode of The Buyout Show, Lucas and Luna dive into the private equity consolidation of the pet care industry, which has grown into a $300 billion market globally. They focus on one specific case: the roll-up of independent veterinary clinics and pet care chains by firms like JAB Holding Company and its veterinary division, now operating under the National Veterinary Associates banner. Lucas explains how PE firms use what's called a 'platform-and-add-on' strategy, acquiring a large veterinary chain as a base and then buying smaller clinics to create regional density. Luna questions whether this consolidation drives better care and pricing, and they discuss recent research showing that prices at PE-owned clinics rose faster than at independent ones. They also touch on the rise of pet insurance and how PE is backing that too. A concrete number: the average pet owner in the U.S. now spends over $1,500 annually on veterinary care, up 30% from five years ago.

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