PETS - PetMed stock dips amid disclosure of deal amount for PetCareRx acquisition
- PetMed Express ( NASDAQ: PETS ) stock fell ~9% on Thursday after the company disclosed the terms of the PetCareRx acquisition, which was announced on Tuesday.
- PetMed is acquiring PetCareRx — a supplier of pet medicine, food and supplies — for $36M in cash, as per a company presentation in an SEC filing.
- PetCareRx will continue to exist as a distinct brand, and the operations will be integrated as part of PetMed's wellness and consumables business, according to the company.
- PetMed said noted that it expects PetCareRx to contribute over $40M to PetMed's overall revenue and increase EBITDA margin, post synergy execution.
- PetMed noted PetCareRx product mix includes ~40% of revenue from non-medication products.
- The acquisition is expected to close this quarter.
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PetMed stock dips amid disclosure of deal amount for PetCareRx acquisition