Oxbow Animal Health, maker of premium pet foods, treats and supplements, has attracted significant investments over the years as the pet care industry continues to grow. Most recently in 2022, Oxbow announced it would be acquired by major pet food company Manna Pro in a deal expected to close in early 2023. This acquisition follows other investments Oxbow has received such as $19 million in 2018 to expand its manufacturing capabilities. As a leading provider of specialty pet foods with over 30 years in business, Oxbow has proven attractive to investors seeking to capitalize on increasing consumer spending on high-end pet care. Key factors driving investments in Oxbow include the strength of its brand, innovative products, and potential for international growth.
Manna Pro plans to acquire Oxbow in pet food industry consolidation
In January 2022, Manna Pro announced it signed a definitive agreement to acquire Oxbow Animal Health. The deal is expected to close in early 2023 pending regulatory approval. Financial terms were not disclosed but the acquisition brings together two trusted names in pet nutrition. Industry analysts see it as part of ongoing consolidation in the pet food market as larger companies seek to expand their premium nutrition offerings. For Oxbow, it provides the resources of a global pet care leader to potentially grow its distribution and product line. Manna Pro has been expanding through acquisitions since 2015 and Oxbow will be its largest so far. The deal gives Manna Pro a high-quality brand in specialty pet foods while Oxbow gains greater reach.
Prior investments fueled Oxbow’s manufacturing expansion
Before agreeing to the Manna Pro acquisition, Oxbow Animal Health received two significant investments in recent years to drive its growth. In 2018, private equity firm Encore Consumer Capital made a $19 million minority investment in Oxbow, providing capital to expand Oxbow’s manufacturing capabilities. This enabled Oxbow to meet increasing demand for its premium pet foods and treats. Part of the investment went towards building a new production facility in Nebraska that began operating in 2020. Then in 2021, Oxbow received another capital infusion led by Sverica Capital Management to continue expanding production capacity. These investments allowed Oxbow to scale up operations to serve its growing customer base.
Strong pet nutrition brand attracts investor interest
Oxbow Animal Health has built a leading brand in specialty pet nutrition over its 30+ year history. Its reputation for quality and innovation makes Oxbow an appealing investment target in the high-growth pet food segment. Oxbow was founded in 1980 with a focus on premium nutrition for small animals. It has since expanded into dog and cat food while retaining its commitment to quality. Oxbow only uses premium ingredients and regularly consults with nutritionists and veterinarians. This has earned the trust of pet parents seeking healthier options. Premium pet food sales continue to take market share as consumers trade up for higher quality. With its strong brand equity, Oxbow is well-positioned to capitalize on the premiumization trend and attractive to investors.
International expansion remains a future growth opportunity
Oxbow products are currently sold throughout the United States and Canada. However, international expansion presents a major opportunity for future growth. As a potential area for capital investment, expanding abroad could significantly increase Oxbow’s addressable market. Pet spending is on the rise globally, especially for premium products that support pet health and wellness. Oxbow’s reputation and innovative formulas could gain traction in overseas markets. The company will likely seek partnerships and acquisitions to accelerate international growth. Investments to expand manufacturing capacity also better position Oxbow to meet foreign demand. Tapping into the fast-growing pet care industry worldwide remains an attractive upside for investors.
Investments in specialty pet food maker Oxbow Animal Health have accelerated its growth and position in premium nutrition. Acquisitions like Manna Pro allow Oxbow to leverage larger players’ resources and distribution networks. Prior capital from firms like Encore Consumer Capital fueled manufacturing expansion to meet demand. Oxbow’s strong brand and innovative formulas continue attracting investor interest, particularly as the high-end pet food market keeps growing. With category-leading products and potential to expand globally, Oxbow remains an appealing target for investments in the booming pet care space.