Investor-backed Inspired Pet Nutrition (IPN) is buying into France-based direct-to-consumer business Ultra Premium Direct (UPD).

CapVest Partners-backed IPN said it has entered “exclusive discussions” with asset-management firm Eurazeo and other minority shareholders to acquire the online pet-food company.

Eurazeo said UPD has established itself as a major player in the French premium pet-food market and is regarded as one of the top direct-to-consumer (D2C) online brands in the category.

IPN’s proposed acquisition of UPD seeks to create a major independent and international branded pet-food platform in Europe, with a view to building a “powerful omnichannel strategy” to “further strengthen loyalty and engagement”.

It comes as Inspired Pet Nutrition acquired Sopral last month as it looks to expand its operations in France and Europe.

Since acquiring a stake in UPD in 2021, Eurazeo has supported UPD's founders and management in strengthening its brand positioning, expanding its premium product range, and reinforcing its leadership team.

The deal is set to be finalised in the fourth quarter, although it is subject to the conclusion and consultation process with the company’s trade unions, as well as approval from the competition authorities.

CEO of IPN, Arthur van Benthem, said: “UPD has delivered impressive growth in both sales and profitability and represents a strong strategic addition to IPN.

“It brings with it a sophisticated, proven e-commerce platform with significant international growth potential, a rapidly expanding mono-brand store network, and another outstanding brand to our portfolio.”

He added: “The business is highly complementary to both IPN and Sopral. By combining UPD’s direct-to-consumer strengths with Sopral’s extensive manufacturing capabilities and IPN’s broader network and customer base, we unlock powerful opportunities to accelerate our ambitious growth plans across Europe.

Head of Eurazeo's Elevate division, Pierre Meignen, said: “We are very proud to have supported the founders and management team of UPD through every key stage of their development and to have stood by their side in creating a French leader in the pet-food ecosystem.

“We thank IPN for the trust they have shown in UPD and are confident that this partnership will enable the company to embark on a promising new phase of growth.”