Houlihan Lokey Advises Jollyes

Houlihan Lokey is pleased to announce that Jollyes, the UK’s second-largest pet retailer, has been acquired by TDR Capital. The transaction was completed on 26 March 2024.

Founded in 1971, Jollyes has grown to become the UK’s second largest pet retailer. Since 2018, under Kester Capital ownership, the company has undergone a significant transformation and is now one of the fastest growing physical retailers in the UK, bolstering its store network from 64 to 100. Jollyes’ strong financial performance has been underpinned by its differentiated proposition—a focus on value and customer service—and the positive long-term fundamentals of the UK pet retail market in which it operates.

TDR Capital’s investment, alongside reinvestment from management, will enable Jollyes to continue its success as an independent business. The company plans to continue the rollout of new stores nationwide, expand its veterinary and grooming services offering, and build on Jollyes’ PetCLUB loyalty scheme with 1 million members already in place today and market-leading participation rates.

Kester Capital, a leading UK lower-middle-market private equity firm, will exit having invested in Jollyes in 2018. Under Kester Capital’s ownership, Jollyes has more than doubled revenue, profit, and headcount. Over that time, Jollyes has consistently delivered market-leading, double-digit like-for-like growth.

Houlihan Lokey served as Jollyes’ exclusive financial advisor and assisted in structuring and negotiating key aspects of the transaction. This deal underscores Houlihan Lokey’s deep retail and multi-site consumer expertise. In the past 12 months, Houlihan Lokey has advised on the sales of City Pub Group to Young’s, Rhubarb Hospitality Collection to Oak View Group and Monica Vinader to Bridgepoint Development Capital. Similarly, the deal marks another successful pet transaction, building on recent deals such as Forthglade, Lily’s Kitchen, Tails.com, and Butternut Box.