L Catterton, a global consumer-focused investment firm, has announced a strategic investment in Japanese veterinary services group Withmal.
The transaction is expected to accelerate Withmal’s expansion plan in the country’s growing veterinary services market, according to a press release.
Founded in 2018, Withmal has emerged as one of the largest veterinary services groups in Japan with over 20 pet clinics across the country.
The fast-growing yet fragmented veterinary services market in Japan presents Withmal with significant opportunities to expand and enhance the standard of care pets receive.
The vast majority of the nearly 13,000 pet clinics in the country are small businesses, predominantly owned by vets in their 50s or above with no succession plans. By joining Withmal, they can continue running their practices even after they retire.
“Withmal is a scalable enterprise in a robust category in Japan that also addresses a very real challenge faced by business owners in the country – the lack of successors,” said Taka Shimizu, a partner in the Asia fund of L Catterton.
“Like many other small- and medium-sized businesses in Japan, a large number of pet clinics in the country have founders who are planning to retire over the next decade with no one succeeding them. By joining Withmal, however, they can extend the longevity of their practices and not only continue to serve their customers but also do so with greater devotion and resources,” he added.
L Catterton is a market-leading consumer-focused investment firm, managing approximately $34 billion of equity capital across three multi-product platforms: private equity, credit, and real estate.
The firm has built a global pet food portfolio with companies like Ainsworth Pet Nutrition, Butternut Box, Canidae, Inspired Pet Nutrition, JustFoodForDogs, Lily’s Kitchen, Nature’s Variety, Petlove, and Wellness Pet Food Company among its investees. Earlier this year, L Catterton invested in China’s premium freeze-dried pet food company Partner Pet.
In June this year, L Catterton forayed into India’s pet food sector with a $60-million investment in Drools. Earlier, the firm also invested in China’s premium freeze-dried pet food company Partner Pet.