Pet food brand SavourLife sold to SunRice

SunRice Group (ASX: SGLLV) is set to acquire SavourLife, a family-owned pet food company, for $20.3 million. The deal will see SavourLife integrated into SunRice's animal feed division, CopRice.

Transaction snapshot

• Deal value: $20.3 million

• Deal multiples: 0.6x revenue; 7.3x EBITDA

• Deal type: 100% acquisition

• Investors: SunRice Group (via CopRice business)

Founded in 2013 by Michael and Kimberlee McTeigue, SavourLife donates half its profits to dog rescue groups. Since its inception, the company has helped rehome over 63,000 rescue dogs and donated $8 million to rescue organisations.

CopRice, which already manufactures SavourLife's dog food range, has committed to continue the company's social mission post-acquisition. The deal aims to use CopRice's existing facilities and supply chain to boost efficiency and growth.

SavourLife reported revenue of $33.4 million and normalised EBITDA of about $2.8 million for the year ending 30 April 2024. The acquisition is expected to add to CopRice's EBITDA contribution in FY25.

Paul Serra, SunRice Group CEO, said the acquisition aligns with growing demand for premium pet products in Australia, which has one of the world's highest dog ownership rates.

The Sydney-based SavourLife has a national presence, with products available across Australia. The deal is set to complete by 30 August 2024, subject to standard conditions. SunRice will fund the purchase using existing cash reserves and available debt facilities.

At the time of writing, SunRice's market capitalisation exceeds $500 million.