Fressnapf founder Torsten Toeller is recommending that family business owners consider partnerships with private equity firms. Two years after Cinven entered the business, Toeller gave a positive assessment, telling the Handelsblatt, “For us, it was a good choice. I would do it again.” However, he admitted that there was significant initial uncertainty among employees, noting, “We had to do a lot of explanatory work here.” Cinven holds roughly a 15 percent minority stake in the pet supply retailer.
Toeller stated that the partnership resulted in the loss of 200 to 250 jobs at the central headquarters. This reduction was primarily a consequence of a strategic shift from a centralized structure to a more decentralized one, rather than a direct goal of cost reduction for Cinven. The investor brought valuable assets, including focus, speed, and clear governance structures. As an example of this focus, Toeller mentioned the introduction of a proprietary GPS tracker for dogs, which was only utilized by about 150,000 to 200,000 out of the company’s total of 20 million customers.
The investor’s pragmatic approach has paid off financially: Fressnapf’s operating profit rose by eleven percent last year, reaching 380 million euros. Furthermore, Toeller announced that the company is set to open its 3,000th store in France in September. He set an ambitious target of opening more than 150 new stores annually, with around 20 planned within Germany. Toeller advises other family business owners to pursue private equity, provided they select the right partner and do not enter the partnership out of necessity.
