Do Corporate Buyouts of Veterinary and Pet Food Brands Drive Up The Cost? – Truth about Pet Food

November 14, 2023 Kar-Bay-Inc

The Federal Trade Commission has issued a consent order against JAB Consumer Partners to “prevent the private equity firm from further consolidating control over specialty and emergency veterinary clinics.” The FTC is requiring the private equity firm to “divest clinics in Richmond, VA, Denver, San Francisco, and the Washington, D.C. area.” As well, the FTC is requiring the equity firm to get “prior approval and prior notice” for any future acquisitions of veterinary clinics.

The FTC news release included the statement “to Protect Pet Owners from Private Equity…” – but the news release did not go into details exactly what consumers are being protected from (such as increased prices). The only information they provided was “According to the complaint, this deal is part of a growing trend towards consolidation in the emergency and specialty veterinary services markets across the United States in recent years by large chains, including JAB, which regularly monitors local markets throughout the United States in contemplation of continued growth through potential small and large acquisitions of specialty and emergency clinics.”

But in a similar press release from FTC regarding private equity’s investment in human medicine, the agency did not hold back. From a September 2023 news release from FTC (bold added): “The Federal Trade Commission today sued U.S. Anesthesia Partners, Inc. (USAP), the dominant provider of anesthesia services in Texas, and private equity firm Welsh, Carson, Anderson & Stowe, alleging the two executed a multi-year anticompetitive scheme to consolidate anesthesiology practices in Texas, drive up the price of anesthesia services provided to Texas patients, and boost their own profits.”

“The FTC alleges that USAP’s multi-pronged anticompetitive strategy and resulting dominance has cost Texans tens of millions of dollars more each year in anesthesia services than before USAP was created.”

There has been a ‘growing trend’ of private equity AND pet food manufacturers buying up veterinary clinics and private equity buying up pet food brands for years. We assume these purchases – just as in human medical services – have resulted in higher veterinary and pet food prices.

Pet food manufacturer Mars Petcare alone owns all of these veterinary related businesses:

AND…all of these pet food/pet care brands:

Our thanks to FTC for their actions. We hope they continue to look into this problem – in pet food too!

Wishing you and your pet(s) the best,

Susan Thixton
Pet Food Safety Advocate
Author Buyer Beware, Co-Author Dinner PAWsible
TruthaboutPetFood.com
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