PetIQ, Inc. Receives FTC Approval to Close Acquisition of the Capstar Portfolio of Products - Seite 2

 

Enhances Product Segment Financial Profile with High-margin Manufactured Product Line: The Capstar portfolio will represent the highest margin business within the PetIQ product segment.  The transaction and related assets are isolated to the products, brands and associated registrations and does not include any physical manufacturing assets or incremental labor.  The transition of the asset is supported by a 24 month manufacturing and service agreement with Elanco, who will systematically assist PetIQ in the transition of production to PetIQ’s state of the art facility in Omaha, NE.

Transaction Details

The assets associated with the Capstar portfolio will be acquired for $95 million in cash. PetIQ will own the complementary product portfolio of Capstar’s highly recognized brand allowing for PetIQ to realize short, mid and long-term value creation putting PetIQ in a leading position in anti-parasitics, a key growth segment of the animal health industry. The Company will finance the transaction with proceeds from the convertible note issuance it previously closed in May 2020. Pro forma for the transaction, including the annualized EBITDA contribution of Capstar, PetIQ expects an immaterial change to its net debt-to-Adjusted EBITDA leverage ratio.  PetIQ remains committed to reducing its leverage through a combination of organic growth and free cash flow.

About PetIQ

PetIQ is a leading pet medication and wellness company delivering a smarter way for pet parents to help their pets live their best lives through convenient access to affordable veterinary products and services.  The company engages with customers through more than 60,000 points of distribution across retail and e-commerce channels with its branded distributed medications, which is further supported by its own world-class medications manufacturing facility in Omaha, Nebraska.  The company’s national service platform, VIP Petcare, operates in over 3,400 retail partner locations in 41 states providing cost effective and convenient veterinary wellness services.  PetIQ believes that pets are an important part of the family and deserve the best products and care we can give them.  For more information, visit www.PetIQ.com.