PetIQ has completed the acquisition of Perrigo Animal Health, a manufacturer of vet quality products for pet parents, from Perrigo Company for $185 million in cash.
Perrigo Animal Health is now an indirect wholly-owned subsidiary of PetIQ.
“We are excited to have closed this important acquisition, and on behalf of PetIQ we welcome the Perrigo Animal Health team to the PetIQ. We look forward to capitalizing on our opportunities to increase our manufacturing scale, expand product and brand diversity, and improve our customer reach, all while we capture significant cost savings and synergies to fuel greater net sales and profitability,” said Cord Christensen, PetIQ’s chairman and chief executive officer.
The transaction was financed through a combination of $25 million of existing cash on hand, $145 million of new term loan financing from Ares Capital Management, with the remaining balance financed through PetIQ’s existing revolving credit facility with East West Bank.
PetIQ continues to expect that this acquisition will be accretive to earnings in the first 12 months following the closing and thereafter. PetIQ expects to report 2019 second quarter financial results on August 7, 2019 at which point it will provide guidance for full year 2019 inclusive of the Perrigo Animal Health acquisition.
Jefferies is serving as financial advisor, KPMG as accounting and audit advisor, and Winston & Strawn and Baker Botts LLP are acting as legal counsel to PetIQ.
PetIQ is a growing pet health and wellness company.