Denmark-based BHJ has finalized the acquisition of Staughton Group, a prominent player in Australia’s pet food industry, in a deal valued at $100 million.
Staughton Group, which encompasses Cool Off, a producer of raw pet food, and Murray River Pet Food, known for its dry pet food offerings under both proprietary and private labels, attracted significant interest. Reports from the Australian Financial Review indicate that Ridley Corporation, a prominent animal feed producer, was among the contenders vying for the acquisition but ultimately fell short.
Despite facing challenges, Staughton Group has demonstrated robust sales growth, with revenues climbing to $156.9 million in 2022 from $132.1 million in the preceding year. However, the company incurred a loss of $913,000, primarily attributed to substantial interest charges.
Founded in 1969, BHJ specializes in sourcing and processing raw materials from Danish slaughterhouses and fish producers to manufacture pet food. The company boasts an international footprint as a supplier of raw materials and ingredients catering to diverse industries, including food, pet food, feed, pharmaceuticals, and energy.
While BHJ previously had a brief stint as a listed entity on the Copenhagen Stock Exchange, it is currently under the ownership of The Lauridsen Group, an Iowa-based investment firm focusing on animal health and food-related ventures.
In a strategic realignment, BHJ consolidated its proteins and stock ingredient division with Proliant, another entity within its portfolio, resulting in the formation of a new entity named Essentia Protein Solutions. This restructuring positions BHJ exclusively within the realm of raw pet food production.
The acquisition of Staughton Group is slated for completion within the current month, marking a significant milestone for BHJ’s expansion strategy in the pet food sector.
