PetMeds to Acquire PetCareRx
The Acquisition Is Expected to Accelerate Revenue Growth and Expand Addressable Market in a $120 Billion U.S. Industry
DELRAY BEACH, Fla. – PetMed Express, Inc. (“PetMeds®”) (NASDAQ: PETS), Your Trusted Pet Health Expert™, has reached a definitive agreement to acquire PetCareRx, a leading supplier of pet medications, food, and supplies.
The combined entities will expand PetMeds’ existing base of over two million customers and will add approximately 10,000 incremental wellness products to the company’s existing product offering. The acquisition of PetCareRx gives PetMeds an immediate revenue boost, and the company believes it can expand on that growth through an expanded product catalog and differentiated services.
“We believe this acquisition will not only be highly beneficial to our customers but will also drive significant shareholder value over the long-term,” said Matt Hulett, CEO and President of PetMeds. “Together, PetMeds and PetCareRx will provide a much expanded product offering and accelerated growth by capturing a larger share of customer wallet through increased basket size and order frequency within the booming $120 billion* annual sales U.S. pet care market. Pet parents will benefit from expanded choice in both prescription and non-prescription medicines, and thousands of incremental products, including premium and prescription food, treats, and supplements.”
Mr. Hulett continued: “PetMeds first became an iconic brand with our ground-breaking prescription medication business, and we intend to continue to innovate with a broader focus on a wider pet health strategy. The acquisition of PetCareRx accelerates the execution of our growth strategy to become the go-to expert in all things pet health and wellness by providing our customers with a broader product offering of the best products on the market.”
Following the closing of the transaction, PetMeds intends to keep the consumer facing PetCareRx e-commerce operation and brand running separately. Customers will continue to enjoy the same world-class service and e-commerce experience while being supported by a more efficient distribution network and broader product selection.
“The PetCareRx team has worked to build a business that inspires trust and loyalty by providing pet parents with ‘nose to tail’ products at great value with uncompromising quality and service. Joining forces with PetMeds will enable a more holistic pet wellness experience with greater resources and scale and a shared commitment to improving the lives of pet parents across the US,” said Jeanette Loeb, CEO of PetCareRx.
The PetCareRx acquisition marks PetMeds’ second major transaction in the last 9 months, following an investment in Vetster in April 2022, which introduced a one-of-a-kind offering for pet parents in the pet telemedicine space.
The transaction is subject to customary closing conditions and completion of regulatory review. The deal has been approved by the board of directors of both PetMeds and PetCareRx and is expected to close in the first quarter of 2023.
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