PetIQ to Acquire Perrigo Animal Health
PetIQ Inc., a pet medication and wellness company, has entered into an agreement to purchase Perrigo Animal Health. The $185 million cash transaction is expected to close during the third quarter of 2019.
Perrigo Animal Health is a Omaha, Neb.-based manufacturer and marketer of over-the-counter pet health and wellness products sold under the brands PetArmor, Sentry and Sergeant’s, to name a few. The company’s flea and tick, de-wormer, behavioral, dental and other products have distribution across pet, grocery, mass, e-commerce, drug, club and specialty retail sales channels.
The acquisition, which is said to create a combined company with about $605 million in pro forma 2018 net sales, will broaden customer reach, increase manufacturing scale and enhance margin profile, according to PetIQ. In addition, the combined company is expected to generate more than $3 million in run-rate cost synergies by 2020 and growing to more than $5 million by 2021 primarily from procurement, manufacturing and marketing efficiencies.
“We believe this strategic transaction will create significant long-term value for all of our stakeholders as we further the execution of our Follow the Pets long-term strategy by combining our companies’ complementary branded pet health and wellness product offerings to create a larger and more diversified business,” said Cord Christensen, chairman and CEO of PetIQ in Eagle, Idaho. “Similar to PetIQ, Perrigo Animal Health has a track record of building sales and category growth in areas complementary to PetIQ through offering high-quality and affordable veterinarian products to pet parents. This business combination is aligned with our mission to make pets’ lives better through improved access to affordable pet health care.
“We are excited for the opportunity to welcome Perrigo Animal Health’s team to PetIQ as we capitalize on our opportunities to increase our manufacturing scale, expand product and brand diversity, and improve our customer reach, all while we capture significant cost savings and synergies to fuel greater net sales and profitability.”
PetIQ’s existing portfolio of products are sold under the brands PetAction, Advetca, PetLock and others.