The deal is expected to close this month.
EAGLE, ID — PetIQ Inc., a pet medication and wellness company, announced that it is acquiring Community Veterinary Clinics LLC d/b/a VIP Petcare, an operator of veterinary clinics within major U.S. retailers.
The transaction, which has been unanimously approved by the PetIQ (Nasdaq: PETQ) board of directors, is expected to close by the end of January, according to a press release.
The deal is valued at about $220 million, including $100 million in cash.
Headquartered in Windsor, CA, VIP runs 2,900 community clinics and wellness centers hosted at local pet retailers across 31 states. Its services include diagnostic tests, vaccinations, prescription medications, microchipping and wellness checks. In 2017, VIP treated more than one million pets through its installed clinics as well as its 76,000 mobile clinics.
"We look forward to working closely with Will Santana, chief executive officer of VIP, who will be joining the PetIQ Board of Directors as well as our senior management team in connection with the closing of the transaction, and to welcoming the entire VIP team to the PetIQ family," said Cord Christensen, PetIQ’s chairman and CEO. "We share a mission to make pets’ lives better by educating pet parents on the importance of regular veterinary care and veterinary-recommended pet products. The addition of VIP will give us a national footprint in the veterinarian services segment, and the opportunity to participate in an approximately $21 billion market in the U.S."
Will Santana, VIP’s CEO, said said PetIQ had become one of the largest customers of his company's wholesale business. He noted that "the complementary nature of our businesses became incredibly apparent to us over the last several years."