3i picks bankers to swallow £500m Applaws pet food maker

3i Group, the listed private equity group, has picked bankers to sell the pet food manufacturer behind leading brands including Applaws.

Sky News has learnt that 3i has appointed Harris Williams to handle an auction of MPM four years after it bought a controlling stake in the company.

Based in Manchester, MPM was founded in 2002 and focuses on branded premium pet food products.

Its other brands include Encore and Reveal.

3i invested roughly £125m in MPM in November 2020 alongside the company’s management team.

A sale, which would be likely to take place sometime in 2025, would be likely to rank among 3i’s biggest exits for years.

The FTSE-100 investment group has come under growing scrutiny in recent months as its most valuable holding, the Dutch-based discount retailer, occupies an increasingly dominant place in its portfolio.

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Shares in 3i have risen by two-thirds over the last year, and the company now has a market capitalisation of over £32bn.

Its soaring stock price has drawn attention from short-sellers who believe that Action is now overvalued by the firm.

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3i and Harris Williams declined to comment.