Umios Corporation has purchased a 51 percent stake in Pet World International (PWI), a major supplier of pet food in Malaysia and Southeast Asia.
Umios, formerly known as Maruha Nichiro, announced its purchase will go through a newly established, unnamed holding company. According to a release about the purchase, it will consist of a JPY 11.4 billion (USD 70 million, EUR 61 million) transaction involving the acquisition of 7.9 million shares of the pet food company.
PWI is currently number two in terms of market share in the dog and cat pet food market in Malaysia, according to Umios. It is a specialist in dry pet food, which according to Umios opens it to additional expansion as, historically, it has focused more on wet pet food.
“The company possesses strong processing capabilities that enable a broad product range from value-oriented to high-nutrition and functional products, with particular strength in dry pet food,” Umios said.
Umios said its advantage in the sustainable sourcing and process of marine-based raw ingredients has allowed it to expand its pet food operations across North America, Europe, and Japan and the acquisition of PWI will allow it to further expand both its geographical footprint and its product offerings. The company added the pet food market has been projected to expand at a 5 to 7 percent compound annual growth rate, with Asia seen as one of the fastest-expanding markets thanks to the expansion of its middle class.
“Against this backdrop, the company has decided to acquire shares in PWI, which holds a strong brand position in the Malaysian market, in order to further expand its pet food business and accelerate its glocal strategy across Asia,” Umios said.
With the acquisition, Umios’ pet food division will achieve operating income of roughly JPY 10 billion (USD 61 million, EUR 54 million) and a return on invested capital of roughly 18 percent, the company said.
“The pet food business, which contributes to the well-being of pets and pet owners, will be positioned as a core growth driver, and the group will continue to pursue disciplined growth investments to maximize corporate value,” Umios said.
Umios CEO Masaru Ikemi told SeafoodSource in March that the company was taking on a “glocal” strategy of value creation and that it was going to establish new regional headquarters – including one in Asia/Oceania – as a means of promoting collaborations and accelerating decision making.
Another part of the plan was roughly JPY 180 billion (USD 1.11 billion, EUR 972 million) in regular and growth investments, with 47 percent of that going toward overseas businesses.
