By Abigail Summerville

NEW YORK Alphia is exploring options including a sale that could value the private equity-owned pet food manufacturer at over $1 billion, according to people familiar with the matter.

Alphia, which is owned by J.H. Whitney & Co and was formed out of the merger of premium pet food manufacturers C.J. Foods Inc and American Nutrition Inc in 2020, is working with investment bank Goldman Sachs Group Inc to explore a potential sale, the sources said.

The sources, who requested anonymity as the matter is confidential, cautioned that no deal is certain and JH Whitney could choose to keep Alphia.

Goldman declined to comment. Alphia and J.H. Whitney did not immediately respond to requests for comment.

In recent years, pet food companies have been able to attract generous multiples from potential buyers, amid a worldwide shortage of pet food due to increased demand and supply chain issues.

Notable deals in recent years include General Mills Inc's’ acquisition of Blue Buffalo Pet Products Inc for nearly $8 billion, Mars Petcare’s acquisition of Champion Petfoods, and Clearlake Capital Group’s takeover of Wellpet.

Alphia also owns animal nutrition products maker LANI, which was previously known as Lortscher's Animal Nutrition, and Veracity Logistics.

(Reporting by Abigail Summerville in New York, Editing by Nick Zieminski)