The closing will affect 289 employees.
The winner owns a store in Michigan.
Northwest Naturals offers raw frozen and freeze-dried diets for dogs and cats.
The new line of products will include traditional toys, collars, and beds, and a variety of other products.
The institutional investors will provide further capital investment, resulting in the infusion of more than $50 million of cash into the company.
Through the partnership more than 4,500 independent retailers in over half the United States will have access to the litter.
Members of the Pet Sustainability Coalition (PSC) share how their businesses focus on what’s best for pets, people and the planet.
The expansion aims to more efficiently route the company's shipments.
The acquisition will allow DaySmart to expand its pet services offerings to incorporate daycare, boarding, kenneling and training into its existing grooming salon and mobile pet grooming software, said company officials.
R2P Pet offers a broad assortment of toys, beds, apparel, leashes, collars and accessories.