MedicAnimal Ltd acquires Petmeds.co.uk
19 August 2012, London – MedicAnimal Ltd, the UK’s largest online retailer of pet food and healthcare supplies has agreed to acquire Petmeds.co.uk, an online store for animal medicines, food and grooming products.
Based in London, MedicAnimal owns a growing portfolio of pet retail brands and operates as an online veterinary dispensary and pharmacy providing over 1.5 million customers with one-to-one pet healthcare advice. Since MedicAnimal was launched in October 2007, it has become one of the UK’s fastest growing online retailers. In five years, the company has achieved almost 180% CAGR in sales, and on its current run rate, it is projecting revenues for 2012 of over £55 million. In May 2012 the company secured a £10 million investment from venture capital investors including Balderton Capital and Iris Capital.
The UK pet food and supplies market has been buoyant as consumers continue to spend on their pets. A recent survey by the Pet Food Manufacturers’ Association reveals that Britain’s 13 million pet-owning households (which make up nearly half all British households) are more likely to cut back on restaurants, holidays and petrol before reducing the amount they spend on feeding and caring for their animals. Between 2006 and 2011, sales of pet products in the UK grew by 18% to c. £2.7 billion and industry analysts expect the market to grow by a further 20% by 2016 (Mintel Report, March 2012).
This deal is an important step in MedicAnimal’s long term development plan. Through a combination of strategic acquisitions and continued organic growth, the company aims to consolidate the UK’s online pet retail market and become a European market leader.
As part of the agreement, the Petmeds founder, Ricky Thomas, and his team will join the MedicAnimal staff. Post-acquisition, the combined company will employ almost 200 staff nationwide.
Commenting on the deal, Ivan Retzignac, founder and CEO of MedicAnimal, said:
“This acquisition will cement MedicAnimal’s place as the UK leader in pet supplies and help us expand our business in Europe where the owners of nearly 200 million pets spend €25 billion annually.
“The average lifetime cost of owning a dog or cat can easily exceed £17,000 and so MedicAnimal is committed to offering the best products at the lowest prices. On average our products are 40% cheaper than those sold by vets or high street retailers and, as we scale our business internationally, we can make first class pet care more affordable than ever.”
PetMeds.co.uk was advised by Clearwater Corporate Finance (led by Nick Jones).