Fressnapf founder endorses private equity partnership

Torsten Toeller, the founder of pet supplies retailer Fressnapf, has expressed support for private equity partnerships, citing his positive experience with investor Cinven. Two years after Cinven acquired a roughly 15 percent minority stake, Toeller stated that the partnership has been a good choice, providing the company with increased focus, speed, and clearer governance structures.

While the partnership led to the loss of 200 to 250 headquarters positions, Toeller clarified that this was due to a strategic shift from a centralized to a decentralized organizational structure rather than a primary goal of cost reduction. The impact of the investor's oversight is reflected in Fressnapf's financial performance, with operating profit rising 11 percent to 380 million euros last year.

Looking ahead, Fressnapf plans to open its 3,000th market in France this September. The company aims to open more than 150 new stores annually, including approximately 20 in Germany.