Butternut Box

Source: Butternut Box

Butternut Box co-founders Kevin Glynn (left) and David Nolan (right)

DTC petfood business Butternut Box has secured a further multimillion-pound strategic investment to accelerate growth, as consolidation in the petfood sector ramps up.

The fresh dogfood delivery brand cashed in over £20m in a Series C fundraising led by the European fund of L Catterton, one of the largest consumer-focused private equity firms in the world.

Other backers include White Star Capital and Five Seasons Ventures. 

The latest raise took the total funding secured by Butternut Box since launching in 2016 to over £40m. It raised £15m in 2019 alone.

The investment is expected to support the company’s operational enhancement and growth across existing and new channels.

“Butternut is driven by our founding purpose of delivering health and happiness to dogs and their humans all over the world,” said co-founder Kevin Glynn.

“With L Catterton’s support, we will accelerate investments in supply chain, manufacturing, marketing and new offerings in order to expand our base of customers who love feeding their dogs with personalised, nutritional and delicious meals and treats.”

The London-based startup delivers freshly cooked petfood tailored to each dog’s needs, based on a survey owners fill out online.

Over the past four years, the company “has established a very strong base of loyal customers in the UK”, said L Catterton Europe partner Jean-Philippe Barade.

He added: “We believe Butternut has a significant opportunity to expand further in a rapidly growing category and is well positioned to benefit from strong consumer trends among pet owners, including the increasing demand for high-quality ingredients, healthier choices and personalised offerings.”

Butternut was advised by Houlihan Lokey and Orrick in the transaction, while L Catteron was advised by Mayer Brown.

The investment in Butternut comes amid predictions of a flurry of buyouts of fast-growing petfood brands this year, with City dealmakers suggesting at least five petfood and treating specialists are set to come to market in 2020.

Houlihan Lokey has been reported to be working with premium-end suppliers Lily’s Kitchen and Forthglade to explore sale options, while MPM Products is working with Harris Williams, with a sale expected this year.

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