PetSmart to acquire online pet retailer Pet360
US$130 million transaction to close in September 2014
PetSmart will acquire Pet360, an online pet specialty retailer, for US$130 million with the possibility of additional performance-based payments totaling up to US$30 million by the end of 2016.
“We are delighted to announce our planned acquisition of Pet360, the most comprehensive online resource for pet parents," said David Lenhardt, PetSmart president and CEO. "This transaction is a smart and efficient way to make PetSmart a leader in the online retail space. [A]lthough online sales are still a relatively small part of the pet products industry, we expect them to become a more relevant source of revenue in the future. Combining PetSmart’s unparalleled strengths in traditional outlets with Pet360’s established digital footprint will perfectly position PetSmart to capitalize on this evolution and enhance our ability to serve pet parents across all distribution channels.”
Pet360 is an integrated media company dedicated to connecting pet parents with the information, products and advice they need to raise happy, healthy pets, according tot he company. The Pet360 network is comprised of more than nine of the top pet websites and reaches over 12 million pet parents per month, making Pet360 the most comprehensive source for online pet information and products in the US. Its family of brands includes Pet360.com, petMD.com, PetFoodDirect.com and BlogPaws. The company is headquartered outside Philadelphia, Pennsylvania.
Combining Pet360’s family of e-commerce websites, digital media programs and content sites, with PetSmart’s existing web platform and store network, will allow PetSmart to provide customers with an omni-channel information and shopping experience, according to PetSmart. It also brings cost savings opportunities through increased scale, merchandise assortment and valuable web platform and fulfillment capabilities.
The transaction is expected to close in September 2014.