Spectrum Brands Holdings, Inc., a global consumer product company, signed a definitive agreement to acquire privately owned PetMatrix, LLC, a manufacturer and marketer of rawhide-free dog chews.

PetMatrix is on pace to achieve approximately US$75 million in sales in calendar year 2017, according to a Spectrum press release. Financial terms were not disclosed about Spectrum’s pet product company acquisition via an accretive, all-cash transaction.

The pet product company acquisition, which has been approved by Spectrum Brands' Board of Directors, is expected to close by the end of May 2017 and is subject to customary closing conditions.

Reaction to the pet food company acquisition

"PetMatrix will immediately strengthen our pet care portfolio with its well-established and growing brands catering to healthy alternative pet trends," said Andreas Rouvé, chief executive officer of Spectrum Brands Holdings, in a press release. "We expect it to further solidify Spectrum Brands as a leader in the North American dog chews category and to provide compelling white space revenue opportunities in Europe, Latin America and Asia."

Founded in 2008, PetMatrix makes rawhide-free dog chews across its two flagship brands, DreamBone and SmartBones. PetMatrix products are sold to mass merchandisers, food and drug stores, and pet specialty stores. The business benefits from a strong patent portfolio and has a pipeline of new products expected to drive future growth and product portfolio diversification opportunities. PetMatrix is owned by Mark Stern, an affiliate of Friend Skoler & Co., and members of management.

"This partnership will bring additional resources to our company and allow us to execute our plans for continued growth in the coming years,” said Mark Stern, founder and CEO of PetMatrix, in a press release.