The veterinary and pet supplies market was the focus of recent
consolidation with the news of two acquisitions in the
sector.
In May, MedicAnimal secured £10 million in funding from
Balderton Capital and Iris Capital. At the same time it confirmed
its purchase of PetSupermarket for an undisclosed sum and
migrated the business from Jarrow, Tyne & Wear to London, where
MedicAnimal is based.
Three months later and MedicAnimal was back on the acquisition
trail with the takeover of PetMeds. Set up by Ricky Thomas in
2006 to address the rising costs of pet healthcare, Petmeds.co.uk
generated revenues of £10 million on sales of pet food,
medicines and accessories for the year ending March 2012. As part
of the deal, Thomas and his team will join MedicAnimal to form a
joint entity. Post-acquisition, the combined company will employ
almost 200 staff nationwide.
Ricky Thomas says, “We immediately recognised that
MedicAnimal was the right partner for the next stage of Petmeds’
growth. MedicAnimal already has an industry-leading fulfilment
system, a number of other pet care websites and a database in
excess of 500,000. Together we aim to create a convenient and
affordable service to our customers, whilst promoting and
protecting pet health.”
MedicAnimal’s cofounder Ivan Retzignac adds that the 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”. Since MedicAnimal was founded as a veterinary
dispensary and pharmacy in October 2007, it has grown to provide
more than 1.5 million customers with pet healthcare advice. In
five years, the company has achieved almost 180 percent compound
annual growth in sales, and on its current run rate, it is
projecting revenues for 2012 of some £55 million-up from
£16 million in 2011.
Through a combination of strategic acquisitions and continued
organic growth, MedicAnimal says it aims to consolidate the UK’s
online pet retail market and become a European market
leader.
Elsewhere in the sector, Yorkshire-based VetUK acquired its
Worcestershire-headquartered rival Nutrecare for an undisclosed
sum in July. The deal saw the Kidderminster business relocate to
Thirsk, but none of its five employees have made the move. VetUK
will now take on four new members of staff, bringing the total
number of employees to 32.
VetUK intends to continue using the Nutrecare brand alongside its
other brands. “This is an exciting year for VetUK,”
said managing director Iain Booth in a statement.
“Year-on-year growth is at 30 percent and we’re about to
celebrate our 1 millionth order in the coming
months.”
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