September 29, 2014
The following includes excerpts from “PetSmart Announces Second Quarter 2014 Results,” issued August 19, 2014. The transaction closed September 29, 2014.
PetSmart, Inc. (PETM) today announced financial results for the second quarter of 2014, and affirmed guidance for fiscal year 2014. The Company also announced a definitive agreement to acquire Pet360, the premier online pure play pet specialty retailer, for $130 million with the possibility of additional performance-based payments totaling up to $30 million by the end of 2016.
Commenting on the Pet360 transaction, Lenhardt said: “We are delighted to announce our planned acquisition of Pet360, the most comprehensive online resource for pet parents. This transaction is a smart and efficient way to make PetSmart a leader in the online retail space. As discussed previously, although 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. 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 U.S. Its family of premium brands includes Pet360.com – the most comprehensive online resource for pet parents; petMD.com – the world’s largest digital resource for pet health information; PetFoodDirect.com – the leading online retailer of pet food, medications and supplies; and BlogPaws – the largest professional network of pet bloggers and social media enthusiasts. The company is headquartered outside Philadelphia, PA.
Combining Pet360’s family of e-commerce websites, digital media programs and content sites, with PetSmart’s existing web platform and store network will immediately allow PetSmart to provide customers a rich omni-channel information and shopping experience. It also brings industry leading talent to PetSmart, along with cost savings opportunities through increased scale, merchandise assortment and valuable web platform and fulfillment capabilities.