As pet ownership climbs, PetIQ, Inc. announced it will be taken private by Bansk Group in a $1.5 billion deal. The all-cash reverse triangular merger will bring the pet medication, health and wellness company into Bansk’s portfolio of consumer brands. The price represents a hefty premium of 51% over PetIQ’s stock price close prior to the announcement.
PetIQ offers “a comprehensive pet health and wellness platform that offers effective and accessible solutions for pet owners,” according to the companies’ joint press release. Bansk Senior Partner Bart Becht adds, “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.”
Pets are big business. Americans will spend a projected $150.6 billion on their pets and pet related products in 2024 alone – $1,733 per pet household. The share of households with pets has jumped 56% in 1988 to 70% in 2022. While cats are favored in Europe, where there are 23% more cats than dogs, Americans love “man’s best friend,” owning 32% more dogs that cats.
Not only are Americans choosing to raise more pets in their households, but those pets are living longer. The life expectancy of a dog in the U.S. climbed 11.4% between 2002 and 2016, from 10.5 years to 11.8 years. This is due to owners providing better nutrition, supplements, vaccinations, and medical care, as well as a trend toward raising animals indoors.
Pet ownership has become a point of contention in the 2024 presidential election. Former President Donald Trump’s Vice President Nominee, Senator JD Vance criticized Democratic leaders as “childless cat ladies” who have less of a stake in the nation’s future because they do not have children. The comments have elicited a backlash from some, with celebrities such as Taylor Swift endorsing Vice President Kama Harris while referring to themselves proudly as childless cat ladies.
Americans are more likely to have a pet in their home than a child during most of their lives. Only 30-44 year olds are more likely to have children than pets. Besides age, there are also demographic differences in pet ownership when analyzed by race. While white Americans are the most likely to have pets and also the least likely to have children, African Americans and Asian Americans are more likely to have kids than pets.
According to DealPulse’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly announced transactions, PetIQ is advised by law firm Cooley LLP and Bansk Group is advised by Davis Polk & Wardwell LLP.
