$125M boost: Chewy acquires Modern Animal to accelerate veterinary expansion
The takeover supports its strategy to combine clinics, digital tools and retail into a unified pet ecosystem.
American online pet retailer Chewy has entered into a definitive agreement to acquire Modern Animal, a fully integrated veterinary platform, for an undisclosed amount.
The acquisition is expected to expand Chewy Vet Care’s footprint to 47 locations nationwide with the addition of Modern Animal’s 29 owned clinics.
Following the acquisition, California-headquartered Modern Animal will retain its operations, customer base, app and team. Chewy expects this transaction to add over $125 million (€106.9M) in annualized run rate revenue.
Modern Animal operates a technology platform offering 24/7 care, as well as 29 clinics across Greater Los Angeles, Orange County, the San Francisco Bay Area, Dallas, Houston and Austin.
Accelerating vet expansion
According to Chewy, the acquisition is part of its transition into a fully integrated pet healthcare ecosystem, combining care, commerce and services across the pet lifecycle.
“This deal accelerates our Vet Care expansion, drives higher long-term customer value and creates a clear competitive moat in the industry,” says CEO Sumit Singh.
In FY2025, Chewy reported net sales rising 6.2% year-over-year (YoY) to $12.6 billion (€11.6B).
Chewy Vet Care (CVC), the company’s network of personalized veterinary clinics, also contributed to full-year growth.
Chewy Vet Care opened 10 new practices last year, reaching the high end of the group’s guidance range and bringing its footprint to 18 locations across 5 states.
Positive synergy
In addition, Modern Animal’s technology will help Chewy optimize vet appointments, boost revenue per visit and drive higher engagement, spending and customer retention.
Chewy notes that this synergy is expected to result in approximately 15-20% uplift in net sales per active customer (NSPAC) for the veterinary network.
“Modern Animal perfectly complements our strategy to become the preeminent end-to-end pet health ecosystem, utilizing both owned and asset-light models,” the CEO adds.
Previous acquisitions
In October last year, Chewy acquired SmartEquine, an American provider of equine health services, from the animal-health technology and services company Covetrus.
The acquisition was aimed at expanding its presence in the higher-margin equine supplements segment through SmartEquine’s premium portfolio.
It also presented an opportunity for the retailer to increase the wallet share of a “passionate and underserved” segment.
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