Recently, PetIQ, a NASDAQ-listed company in New York, released its second-quarter earnings report, in which PetIQ revealed that the company had signed a definitive merger agreement with Bansk Group, and the private investment company would acquire all outstanding shares of PetIQ at a price of $1.5 billion.
As of August 8, PetIQ was quoted at $30.42 per share, an increase of 47.89%, and the total market capitalization of PetIQ was $905 million.
The price is $31 per share, and the transaction is expected to close in Q4
The original executive team will continue to operate
According to the announcement issued by PetIQ, Bansk Group will acquire all outstanding shares of PetIQ at a price of $31.00 per share, with a transaction value of approximately $1.5 billion, which is expected to close in the fourth quarter of 2024, subject to the approval of PetIQ shareholders and other closing conditions.
In addition, upon completion of the transaction, PetIQ's common stock will cease to be listed on the Nasdaq Stock Market, and PetIQ will remain privately held and continue to be operated independently by the original Company's executive team.
Commenting on the acquisition, PetIQ's founder, chairman and CEO, · Christensen, said that Bansk Group offers a considerable premium to PetIQ shareholders, and that PetIQ's growth and success over the past 14 years have justified the company's long-term strategic decisions, and PetIQ is pleased to partner with Bansk Group, which will leverage Bansk's operational and brand building experience and more than 40 years of expertise in managing healthcare products. Continue to provide convenient and affordable pet health care services to pet owners.
Chris ·, senior partner at Bansk Group, said PetIQ is a comprehensive pet health platform that provides effective and accessible solutions for pet owners. Bansk will use its expertise to build PetIQ into a unique and trusted consumer brand.
Bart, Senior Partner and Chairman of Bansk Group, said that he looks forward to working with the PetIQ team, and Bansk will continue to support the development of PetIQ in the future, strengthen its brand capabilities, and continue to invest in PetIQ products.
In 2017, it went public and acquired a number of medical service companies
PetIQ's revenue in the first half of this year exceeded $600 million
According to official information, PetIQ was founded in 2010 and is headquartered in Eagle, Idaho, United States, is a distributor of pet drugs and supplements, some products can also be produced independently, PetIQ also has its own brand VetIQ brand and PetVet.
In 2017, PetIQ went public on NASDAQ and raised $78 million in financing during the same period.
In 2018, PetIQ acquired VIP Petcare, an operating service provider that operates veterinary clinics at United States retailers, for $100 million in cash, $30 million in promissory notes, and approximately $90 million in equity, and the acquisition also allowed PetIQ to expand its business into veterinary services.
In the same year, PetIQ acquired HBH Enterprises, an innovative developer and manufacturer of specialty pet supplements and treats, for approximately $500,000 in cash, the issuance of 400,000 shares of PetIQ Class B common stock, and the repayment of certain HBH debts;
In 2019, PetIQ acquired Perrigo's animal health business, Perrigo Animal Health, for $185 million, which became a wholly owned subsidiary of PetIQ.
According to the financial report released by PetIQ, in the first half of 2024, the company achieved revenue of US$637.4 million, a year-on-year increase of 5.3%, a net profit of US$30.2 million, a year-on-year increase of 46.6%, and an adjusted net profit of US$41.2 million, a year-on-year increase of 34.7%;
Among them, the revenue in the second quarter was US$328.9 million, a year-on-year increase of 4.6%, the net profit was US$15.3 million, a year-on-year increase of 51.1%, and the adjusted net profit was US$22.7 million, a year-on-year increase of 52.2%.
By segment, total revenue from the PetIQ product segment in the first half of 2024 was $568.1 million, an increase of 5.8%, primarily driven by higher sales in the Flea & Tick and Health & Wellness product categories.
Total revenue in the Services segment was $69.3 million, an increase of 2.1%, primarily due to higher sales of mobile community clinics.
Notably, the earnings report also mentioned that in the first half of this year, PetIQ closed 149 animal clinics in partner stores such as Walmart, Meijer and Tractor Supply, which the company explained as "improving future profitability" and saving about $6 million in net costs over the next 12 months.
As of December 31, 2023, the number of animal clinics at PetIQ has more than halved, from 282 to 133.
About Bansk Group:
Founded in 2019, Bansk Group is a New York-based private investment firm focused on investing in and building unique consumer brands. The Company has differentiated brands in four major consumer categories: Beauty & Personal Care, Consumer Health, Food & Beverage, and Household Products.
According to its official website, Bansk has made more than 40 transactions, participated in more than $30 billion in equity capital investment, and has extensive investment experience in the consumer goods industry.
