PetIQ, Inc. Completes Acquisition of Perrigo Animal Health
July 08 2019 - 4:05PM
PetIQ, Inc. (“PetIQ” or the “Company”) (Nasdaq: PETQ), a leading
pet medication and wellness company, today announced effective
today, it has completed the previously announced acquisition of
Perrigo Animal Health, a leading manufacturer of vet quality
products for pet parents, from Perrigo Company plc (NYSE; TASE:
PRGO) for $185 million in cash. Perrigo Animal Health is now an
indirect wholly-owned subsidiary of PetIQ. In addition,
Michael Smith, a pet and consumer packaged goods industry veteran
has been appointed Executive Vice President, Products Division with
responsibility for managing all aspects of PetIQ’s product revenue,
product strategy, retailer relationships and strategic product
partnerships, reporting directly to Cord Christensen, PetIQ’s
Chairman and Chief Executive Officer.
Christensen, commented, “We are excited to have
closed this important acquisition, and on behalf of PetIQ we
welcome the Perrigo Animal Health team to the PetIQ. We look
forward to capitalizing 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.”
“To support our growing business, we are also
very pleased to announce that Michael has joined us from the
world’s largest retailer where he has held various leadership roles
within the pet and personal care categories. In addition to
Michael’s retail experience, he brings a strong consumer background
having worked at leading consumer packaged goods companies
including Colgate-Palmolive, Procter & Gamble, and
Energizer. We look forward to Michael’s leadership
contributions as we integrate Perrigo Animal Health and grow our
existing pet products business over the next several years.”
The transaction was financed through a
combination of $25 million of existing cash on hand, $145 million
of new term loan financing from Ares Capital Management, with the
remaining balance financed through PetIQ’s existing revolving
credit facility with East West Bank. PetIQ continues to expect that
this acquisition will be accretive to earnings in the first twelve
months following the closing and thereafter. PetIQ expects to
report 2019 second quarter financial results on August 7, 2019 at
which point it will provide guidance for full year 2019 inclusive
of the Perrigo Animal Health acquisition.
Jefferies LLC is serving as financial advisor, KPMG as
accounting and audit advisor, and Winston & Strawn LLP and
Baker Botts LLP are acting as legal counsel to PetIQ.
About PetIQ
PetIQ is a leading, rapidly growing pet health
and wellness company. Through over 60,000 points of
distribution across retail and e-commerce channels, PetIQ and VIP
Petcare, a wholly-owned subsidiary, have a mission to make pet
lives better by educating pet parents on the importance of offering
regular, convenient access and affordable choices for pet
preventive and wellness veterinary products and services.
PetIQ believes that pets are an important part of the family
and deserve the best products and care we can give them. For
more information, visit www.PetIQ.com.
Forward Looking Statements
This press release contains forward-looking
statements that involve risks and uncertainties, such as statements
about our plans, objectives, expectations, assumptions or future
events. In some cases, you can identify forward-looking statements
by terminology such as "anticipate," "estimate," "plan," "project,"
"continuing," "ongoing," "expect," "believe," "intend," "may,"
"will," "should," "could" and similar expressions.
Forward-looking statements involve estimates, assumptions, known
and unknown risks, uncertainties and other factors that could cause
actual results to differ materially from any future results,
performances, or achievements expressed or implied by the
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results, and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved. Forward-looking
statements are based on information available at the time those
statements are made or management's good faith belief as of that
time with respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking statements. Important factors that could cause such
differences include, but are not limited to, our ability to
successfully grow our business through acquisitions; our dependency
on a limited number of customers; our ability to implement our
growth strategy effectively; disruptions in our manufacturing and
distribution chains; competition from veterinarians and others in
our industry; reputational damage to our brands; economic trends
and spending on pets; the effectiveness of our marketing and trade
promotion programs; recalls or withdrawals of our products or
product liability claims; our ability to manage our manufacturing
and supply chain effectively; disruptions in our manufacturing and
distribution chains; our ability to introduce new products and
improve existing products; our failure to protect our intellectual
property; costs associated with governmental regulation; our
ability to keep and retain key employees; our ability to sustain
profitability; and the risks set forth under the “Risk Factors” of
our Annual Report on Form 10-K for the year ended December 31, 2018
and other reports filed from time to time with the Securities and
Exchange Commission.
Additional risks and uncertainties not currently
known to us or that we currently deem to be immaterial also may
materially adversely affect our business, financial condition or
operating results. The forward-looking statements speak only
as of the date on which they are made, and, except as required by
law, we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events. In addition, we cannot assess the impact of
each factor on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Consequently, you should not place undue reliance on
forward-looking statements.
CONTACT:
|
|
Investor Relations Contact: |
Media Relations Contact: |
ICRKatie
Turnerkatie.turner@icrinc.comJeff Sonnek646-277-1263
jeff.sonnek@icrinc.com |
ICRCory
Ziskindcory.ziskind@icrinc.com646-277-1232 |
PetIQ (NASDAQ:PETQ)
Historical Stock Chart
From Mar 2024 to Apr 2024
PetIQ (NASDAQ:PETQ)
Historical Stock Chart
From Apr 2023 to Apr 2024