PetIQ, the pet wellness company recognized for its innovative solutions, has made headlines with the announcement of its impending acquisition by the private investment firm Bansk Group. This all-cash deal, valued at approximately $1.5 billion, has significantly increased PetIQ's shares. The transaction is set at $31 per share, reflecting a notable premium of about 51% compared to the company's closing stock price on Tuesday, as stated in a joint release on Wednesday. In response to this favorable acquisition news, PetIQ's shares soared almost 48% during late-afternoon trading on Wednesday.
Cord Christensen, the Chief Executive of PetIQ, noted, "After a comprehensive assessment of the offer with the assistance of our outside advisers, the board has determined that this transaction represents an attractive outcome for PetIQ and our stockholders. This transaction provides us with an incredible opportunity to continue to execute on our strategy of providing pet parents convenient access to affordable pet healthcare while accelerating many longer-term growth initiatives." Once the transaction is finalized, PetIQ's common stock will be delisted from the Nasdaq, but the company will remain operationally independent under its existing executive leadership, as specified in the statement. Bansk Group’s Chairman, Bart Becht, expressed confidence in PetIQ, stating, "As longtime investors in the consumer health and wellness space, we believe PetIQ has developed a portfolio of uniquely differentiated brands in the very attractive pet health and wellness category." The acquisition is anticipated to be completed in the fourth quarter, pending approval from PetIQ’s stockholders and fulfillment of other conditions.
In a separate announcement, PetIQ reported an impressive surge in its adjusted earnings for the second quarter, which jumped to $0.70 per share from $0.46 a year earlier. Additionally, the company's net sales experienced a rise of 4.6%, totaling $328.9 million. Meanwhile, analysts surveyed by Capital IQ were predicting adjusted earnings of $0.50 per share and net sales of $330.1 million, indicating that PetIQ has exceeded expectations. Notably, amidst the acquisition developments, PetIQ has suspended its full-year financial guidance, reflecting the changing landscape following the deal with Bansk Group.
The current share price stands at $30.43, marking an increase of 9.86, which translates to a substantial percent change of 47.91..