EAGLE, Idaho and NEW YORK - PetIQ, Inc. (NASDAQ:PETQ), a prominent provider of pet medications and wellness products, has been acquired by Bansk Group, a private investment firm, in a deal valued at about $1.5 billion. The acquisition, finalized today, will result in PetIQ stockholders receiving $31.00 per share in cash. Following the completion of the transaction, PetIQ will become a private entity and its shares will be delisted from the Nasdaq stock exchange.
Cord Christensen, the Founder, Chairman, and CEO of PetIQ, expressed satisfaction with the deal, emphasizing the value delivered to shareholders and the anticipated acceleration of PetIQ's growth initiatives under the new partnership. Chris Kelly, Senior Partner of Bansk Group, highlighted the opportunity to build on PetIQ's momentum, enhancing its offerings for pet parents.
Bansk Group, established in 2019, has a history of investing in consumer brands across various sectors. The firm's Senior Partner and Chairman, Bart Becht, noted PetIQ's strong position in the pet health and wellness market and the potential for further growth through strategic investments and acquisitions.
The transaction was advised by Jefferies LLC and Cooley LLP for PetIQ, while Davis Polk & Wardwell LLP provided legal counsel to Bansk Group.
PetIQ operates a product business through retail and e-commerce channels and manufactures and distributes pet products from facilities in Nebraska, Utah, and Florida. The company also offers veterinarian services at mobile clinics and wellness centers across 39 states. Bansk Group, with its extensive experience and network in the consumer products industry, aims to support PetIQ's next phase of growth.
This news is based on a press release statement and provides an overview of the acquisition's factual details without endorsing the claims or forecasting future performance.
In other recent news, PetIQ has entered into an acquisition agreement with the private investment firm, Bansk Group. Valued at approximately $1.5 billion, the all-cash deal is expected to close in the fourth quarter of 2024, pending shareholder approval. As part of the agreement, PetIQ stockholders will receive $31.00 per share, marking a significant premium over recent trading prices.
Following this announcement, Truist Securities downgraded PetIQ's stock from Buy to Hold and raised its price target to $31.00. The firm noted that in light of the acquisition and the significant price movement of the stock, they do not anticipate any further bidders for PetIQ.
The acquisition by Bansk Group represents a major development for PetIQ, providing shareholders with a clear exit strategy at a set price. However, it's important to note that post-acquisition, PetIQ will transition into a privately held company, and will subsequently be delisted from the NASDAQ Stock Market.
InvestingPro Insights
The acquisition of PetIQ by Bansk Group at $31.00 per share aligns closely with recent market valuations. According to InvestingPro data, PetIQ's stock was trading near its 52-week high, with a previous close of $30.98. This indicates that the acquisition price represents a fair value for shareholders, as it's also in line with the fair value of $31 based on analyst targets.
PetIQ's strong financial performance likely contributed to its attractiveness as an acquisition target. The company's revenue growth of 13.57% over the last twelve months and an EBITDA growth of 24.87% demonstrate its expanding market presence. These metrics support Bansk Group's view of PetIQ's potential for further growth in the pet health and wellness market.
InvestingPro Tips highlight that PetIQ has been profitable over the last twelve months and is expected to grow its net income this year. This financial health, combined with the fact that liquid assets exceed short-term obligations, suggests a solid foundation for Bansk Group to build upon as they take PetIQ private.
For investors interested in similar opportunities in the pet care industry, InvestingPro offers 12 additional tips for PetIQ, providing a comprehensive analysis of the company's financial position and market performance.
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