Bansk Group has agreed to acquire PetIQ, a provider of pet focused medication, health and wellness services, in a transaction valued at approximately $1.5 billion.
PetIQ has two operating segments. Its products segment includes prescription medications, over-the-counter treatments, and health and wellness products sold under the PetArmor, VetIQ, and Sentry brands; and its services segment provides veterinary care through community clinics, wellness centers, and partnerships with retail locations, which serve over 1.2 million pets annually across 42 states.
PetIQ operates over 2,600 mobile community clinic locations and wellness centers that are hosted at retail stores across the United States. Specifically, the company has more than 130 permanent wellness centers within retail partners like Walmart and Meijer. These clinics provide preventive veterinary care services, making it convenient and affordable for pet owners to access necessary health services for their pets.
PetIQ is headquartered near Boise in Eagle, Idaho. In addition to its products and services segments, the company has over 780,000 square feet of EPA and FDA-licensed and SQF-certified manufacturing space, producing more than 1,000 SKUs of pet products, including flea and tick control products, dental treats, dog and cat treats, stain and odor treatments, and nutritional supplements. The four manufacturing facilities are located in Nebraska, Utah, Florida, and Texas.
PetIQ’s TTM Adjusted EBITDA as of March 2024 was $106 million. Based on the $1.5 billion valuation, this equates to a valuation multiple of 14.1x.
The acquisition of PetIQ has been approved by its board of directors. “On behalf of PetIQ’s board of directors, we are thrilled to announce the execution of a definitive agreement with Bansk Group at a substantial premium for PetIQ stockholders,” said Cord Christensen, the founder, chairman, and CEO of PetIQ. “After a comprehensive assessment of the offer with the assistance of our outside advisors, the board has determined that this transaction represents an attractive outcome for PetIQ and our stockholders.”
“Cord and the entire PetIQ team have done a fantastic job developing a comprehensive pet health and wellness platform that offers effective and accessible solutions for pet owners,” said Chris Kelly, a senior partner at Bansk Group. “We are thrilled to partner with the PetIQ team and look forward to leveraging our expertise in building distinct, trusted consumer brands to support the company’s continued success.”
Bansk invests from $100 million to $400 million of equity in consumer brands with specific interest in four sectors: beauty and personal care, health, food and beverage, and household products. In July 2023, the consumer-focused firm held a final close of its inaugural fund, Bansk Fund I LP, with $800 million of capital. Bansk was founded in 2019 and is based in New York City.
Bansk’s senior management team is led by a group of executives with decades of consumer-focused investing and operating experience. The firm’s senior partner and chairman, Bart Becht, was previously the CEO of Reckitt Benckiser, a UK-headquartered multinational consumer goods company specializing in health, hygiene, and home products; and Brian O’Connor, the firm’s senior partner and chief investment officer, was previously at Vestar Capital Partners for nearly 20 years. Other partners at Bansk include Chris Kelly, formerly at TPG Growth, and Bill Mordan, formerly at Reckitt Benckiser.
“As longtime investors in the consumer health and wellness space, we believe PetIQ has developed a portfolio of uniquely differentiated brands in the very attractive pet health and wellness category,” said Bart Becht, a senior partner and the chairman of Bansk Group. “We look forward to working with the talented PetIQ team to support their strong momentum, including through investments in enhanced capabilities and offerings as well as through strategic acquisitions.”
Jefferies is the financial advisor to PetIQ on this transaction, which is expected to close in the fourth quarter of 2024.
© 2024 Private Equity Professional | August 9, 2024
