Cinven Said to Pause €2 Billion Sale Process of Pet Food Maker

Kat Hidalgo, Bloomberg News

(Bloomberg) -- Cinven Group has paused a sale process for pet food manufacturer Partner in Pet Food, according to people familiar with the matter.

The private equity firm has put an auction process on hold because it wasn’t able to agree with bidders on a price, said the people, who asked not to be identified discussing a private transaction. The Hungary-based company was previously reported to be valued at more than €2 billion ($2.2 billion).

The sale process had attracted both private equity buyers and trade bidders, one of the people said. A joint bid from Advent International and CVC Capital Partners was the last remaining offer, the Financial Times reported this week. Bank of America Corp. and Goldman Sachs Group Inc. were working on the sale.

Cinven, Advent International, CVC, Bank of America and Goldman Sachs declined to comment. Partner in Pet Food didn’t respond to a request for comment.

The paused sale is the latest example of buyers and sellers wrangling over deal prices. In February, Broadcom Inc. was said to put on hold a sales process for its security software business after indications of interest fell short of the chipmaker’s expectations. And last year, private equity firms hit roadblocks on multiple deals amid heady price demands and difficult financing markets. Some buyout firms struggling to offload companies they’ve held for several years and return cash to investors are now turning to the private credit market.

Partner in Pet Food operates 12 production facilities and is present in 10 countries, according to its website. Cinven has owned the business since 2018.

--With assistance from Alexandra Muller.