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Petco fetches deal with e-retailer

11/20/2014

As the pet supply industry continues to experience record growth, Petco is looking to expand its online offerings to include prescription services and more premium products.


Petco has agreed to acquire Drs. Foster & Smith, a Wisconsin-based online pet store founded by veterinarians. Drs. Foster & Smith specializes in pet care and education and is known for veterinary expertise on prescription medications and premium products for dogs, cats, fish, birds, reptiles, horses and small animals.


“The acquisition underscores our commitment to nurturing the complete health and well-being of animals and further allows Petco to meet the diverse and expansive needs of pet parents," said Petco CEO Jim Myers.


The addition of Drs. Foster & Smith's product line will expand Petco's capabilities in pet health to include prescription services, including prescription diets, preventive care and products created by licensed veterinarians. Drs. Foster & Smith was founded in 1983 as a group of four veterinary clinics.


In 2003, the company began offering a full-service pharmacy that enables customers to fill prescriptions online and by mail-order. The acquisition includes both Drs. Foster & Smith's prescription services as well as its branded products, including joint care supplements, dog and cat foods, dog beds, cat furniture, horse supplies, equine equipment and other pet care essentials.


Drs. Foster & Smith's generates half of its annual revenue online, while the other half is rooted in its catalog business. Details of the deal were not disclosed, but the acquisition is expected to be completed by early 2015.


In August, Petco competitor PetSmart announced an agreement to acquire Pet360, an online pet specialty retailer. The pet retail sector has been active over the last few months, with valuations continuing to rise as consumers increasingly spend on their pets.


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