Adapted from a press release
Pet MD Brands, a subsidiary of Swedencare AB, has acquired the American brand, Riley's, for US$7.5 million ($78.4 million SEK).
With this acquisition, Swedencare has established a presence in the organic treats market for dogs in the U.S. According to the company, the deal was been completed in two steps: 30% was acquired at the beginning of Q4 2023 with an option to buy the remaining 70% in H1 2024. Swedencare closed the deal on January 2.
"Through the acquisition of Riley’s, we have now entered the fast-growing organic treat market in North America," said Brian Nugent, CCO of Swedencare North America.
Pet parents have made organic pet treats one of the fastest growth categories and entering this category will allow Swedencare to use the Pet MD Brands team and technology to accelerate the above-industry growth both Riley’s and Pet MD Brands have seen throughout 2023, said Nugent.
"We see exciting opportunities to quickly add Riley’s high-quality, organic, and premium products and cross-sell into the U.S. veterinary and the U.S. pet retail markets through our existing North American brands," added Nugent. "In addition, we are exploring expanding the range internationally through other Swedencare subsidiaries.”
An initial joint test launch of Riley's products took place in Pet MD's Amazon channel beginning in January 2023, resulting in over US$2 million of Riley’s sales growth in this channel.
Based in Odessa, Florida, Riley’s specializes in premium dog treat offerings, which include organic varieties and single-ingredient formulas in jerky and baked biscuit formats. The company also offers nutritional supplements targeting skin and coat health, ear care, liver support and more in dogs. According to Riley’s, its net revenue from the last fiscal year, January to December 2023, was approximately US$3.2 million.
