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PetMed Express, Inc. (“PetMeds®”) (NASDAQ: PETS), Your Trusted Pet Health Expert™, has entered into a definitive agreement to acquire PetCareRx, a leading provider of pet medications, food and supplies.
The combined entities will expand PetMeds’ existing base of more than two million customers and 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 portfolio and differentiated services.
“We believe this acquisition will not only be highly beneficial to our customers, but will also create significant long-term shareholder value,” said Matt Hulett, PetMeds CEO and President. “Together, PetMeds and PetCareRx will provide a much broader product offering and accelerated growth by capturing greater customer wallet share through increased basket size and frequency of orders within the burgeoning pet care market. US pet carrier with annual sales of $120 billion*. Pet owners will benefit from a greater variety of prescription and over-the-counter medications, and thousands of incremental products, including premium and prescription foods, treats, and supplements.”
Mr. Hulett continued: “PetMeds first became an iconic brand with our innovative prescription drug business, and we intend to continue to innovate with a broader focus on a broader 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 the brand operating 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 owners with ‘nose to tail’ products at a great value with unsurpassed quality and service. Joining forces with PetMeds will enable a more holistic pet wellness experience with increased resources and scale and a shared commitment to improving the lives of pet owners 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 unique offering for pet owners in the pet telemedicine space.
The transaction is subject to customary closing conditions and the completion of regulatory review. The deal has been approved by the board of directors of PetMeds and PetCareRx and is expected to close in the first quarter of 2023.
CapM Advisors acted as financial advisor to PetMeds in this transaction.
PetMed Analyst Day Webcast and Conference Call
The PetMeds Express management team will host an Analyst Day webcast and conference call to provide an update on how the transaction fits into the company’s broader strategy and answer questions from financial analysts on January 19 2023 at 10:00 am ET.
Date: Thursday, January 19, 2023 Time: 10:00 am Eastern Time (7:00 am Pacific Time) Webcast Link: PetMeds Analyst Day Webcast
A replay of the webcast will be added to the investor relations section of the company’s website. A telephone replay of the conference call will also be available through February 2, 2023.
Toll Free Replay Number: 844-512-2921 International Replay Number: 412-317-6671
Reproduction code: 13735204
*Source: Statista, 2021
ABOUT PETCARERX
PetCareRx’s mission is to add love to the world by improving the lives of pets and pet owners. To make this mission possible, their guiding philosophy in pet wellness is that every pet deserves lots of love, proper nutrition, complete protection, and personalized attention. In this spirit, they provide treats and toys, food and vitamins, protection against fleas, ticks and heartworms, and a wide range of prescription drugs, all at a great price and with the convenience of the Internet. For more information please visit www.petcarerx.com.
ABOUT PETMEDS
Founded in 1996, PetMeds is your trusted pet health expert, providing direct-to-consumer pet health medications, products and services in PetMeds.com and through their toll-free number (1-800-PetMeds). PetMeds aims to be the most trusted pet health expert by providing incredible care and services that are affordable to the broadest group of pet owners, because every pet deserves to live a long, happy and healthy life. For more information please visit www.petmeds.com.
FORWARD-LOOKING STATEMENTS
This press release from PetMed Express, Inc. (the “Company”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as modified. All statements contained in this press release that do not relate to historical facts should be considered forward-looking statements. Words like “can”, “could”, “expect”, “project”, “perspective”, “strategy”, “intend”, “plan”, “seek”, “anticipate”, “believe”, “estimate”, ” “forecast”, “potential”, “strive”, “target”, “continue”, “likely”, “will”, “would” and other similar words and expressions are intended to mean forward-looking statements. Such forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain and are subject to various risks and uncertainties, including: the risk that the Company and PetCareRx may not complete with successful acquisition transaction; the risk that the expected benefits of the acquisition to the Company will not be realized or will not be realized within the expected timeframes; or unknown liabilities that may or may not be under the control of the Company. The Company’s future results may also be affected by other risk factors listed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, the Company’s Annual Report on Form 10-K for the year ended March 31, 2022, as well as other filings on Form 10-Q and periodic filings on Form 8-K. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release and should not be taken to represent the views of the Company as of any later date. The Company expressly disclaims any obligation to update any forward-looking statement, except as required by law. If the Company updates one or more forward-looking statements, it should not be inferred that the Company will make any additional updates with respect to those or any other forward-looking statements.
CONTACT WITH THE MEDIA
Mary Eva Tredway Butin PR[email protected]
PETMEDS INVESTOR RELATIONS CONTACT
Brian M. Prenoveau, CFAMZ Group 561-489-5315[email protected]
Source: PetMed Express, Inc.
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